Correlation Between GLG LIFE and TOTAL GABON
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and TOTAL GABON at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GLG LIFE and TOTAL GABON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLG LIFE TECH and TOTAL GABON, you can compare the effects of market volatilities on GLG LIFE and TOTAL GABON and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GLG LIFE with a short position of TOTAL GABON. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and TOTAL GABON.
Diversification Opportunities for GLG LIFE and TOTAL GABON
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and TOTAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and TOTAL GABON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL GABON and GLG LIFE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GLG LIFE TECH are associated (or correlated) with TOTAL GABON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL GABON has no effect on the direction of GLG LIFE i.e., GLG LIFE and TOTAL GABON go up and down completely randomly.
Pair Corralation between GLG LIFE and TOTAL GABON
If you would invest 11,099 in TOTAL GABON on October 21, 2024 and sell it today you would earn a total of 5,201 from holding TOTAL GABON or generate 46.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
GLG LIFE TECH vs. TOTAL GABON
Performance |
| Timeline |
| GLG LIFE TECH |
| TOTAL GABON |
GLG LIFE and TOTAL GABON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and TOTAL GABON
The main advantage of trading using opposite GLG LIFE and TOTAL GABON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, TOTAL GABON can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TOTAL GABON will offset losses from the drop in TOTAL GABON's long position.| GLG LIFE vs. Axway Software SA | GLG LIFE vs. VITEC SOFTWARE GROUP | GLG LIFE vs. NEW MILLENNIUM IRON | GLG LIFE vs. Khiron Life Sciences |
| TOTAL GABON vs. Tyson Foods | TOTAL GABON vs. T MOBILE US | TOTAL GABON vs. THAI BEVERAGE | TOTAL GABON vs. Austevoll Seafood ASA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |