Correlation Between GLG LIFE and MARKET VECTR
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and MARKET VECTR 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 MARKET VECTR 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 MARKET VECTR RETAIL, you can compare the effects of market volatilities on GLG LIFE and MARKET VECTR 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 MARKET VECTR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and MARKET VECTR.
Diversification Opportunities for GLG LIFE and MARKET VECTR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and MARKET is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and MARKET VECTR RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKET VECTR RETAIL 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 MARKET VECTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKET VECTR RETAIL has no effect on the direction of GLG LIFE i.e., GLG LIFE and MARKET VECTR go up and down completely randomly.
Pair Corralation between GLG LIFE and MARKET VECTR
If you would invest 21,680 in MARKET VECTR RETAIL on September 14, 2024 and sell it today you would earn a total of 935.00 from holding MARKET VECTR RETAIL or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLG LIFE TECH vs. MARKET VECTR RETAIL
Performance |
| Timeline |
| GLG LIFE TECH |
| MARKET VECTR RETAIL |
GLG LIFE and MARKET VECTR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and MARKET VECTR
The main advantage of trading using opposite GLG LIFE and MARKET VECTR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, MARKET VECTR 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 MARKET VECTR will offset losses from the drop in MARKET VECTR's long position.The idea behind GLG LIFE TECH and MARKET VECTR RETAIL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MARKET VECTR vs. Apple Inc | MARKET VECTR vs. Apple Inc | MARKET VECTR vs. Apple Inc | MARKET VECTR vs. Apple Inc |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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