Correlation Between GLG LIFE and SEKISUI CHEMICAL
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL 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 SEKISUI CHEMICAL, you can compare the effects of market volatilities on GLG LIFE and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and SEKISUI CHEMICAL.
Diversification Opportunities for GLG LIFE and SEKISUI CHEMICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and SEKISUI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and SEKISUI CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEKISUI CHEMICAL has no effect on the direction of GLG LIFE i.e., GLG LIFE and SEKISUI CHEMICAL go up and down completely randomly.
Pair Corralation between GLG LIFE and SEKISUI CHEMICAL
If you would invest 2.00 in GLG LIFE TECH on November 6, 2024 and sell it today you would earn a total of 0.00 from holding GLG LIFE TECH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GLG LIFE TECH vs. SEKISUI CHEMICAL
Performance |
| Timeline |
| GLG LIFE TECH |
| SEKISUI CHEMICAL |
GLG LIFE and SEKISUI CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and SEKISUI CHEMICAL
The main advantage of trading using opposite GLG LIFE and SEKISUI CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, SEKISUI CHEMICAL 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 SEKISUI CHEMICAL will offset losses from the drop in SEKISUI CHEMICAL's long position.| GLG LIFE vs. United Microelectronics Corp | GLG LIFE vs. TT Electronics PLC | GLG LIFE vs. Singapore Airlines Limited | GLG LIFE vs. International Consolidated Airlines |
| SEKISUI CHEMICAL vs. Air Transport Services | SEKISUI CHEMICAL vs. United Rentals | SEKISUI CHEMICAL vs. Gaztransport Technigaz SA | SEKISUI CHEMICAL vs. Nishi Nippon Railroad Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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