Correlation Between FORMPIPE SOFTWARE and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both FORMPIPE SOFTWARE and GLG LIFE 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 FORMPIPE SOFTWARE and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORMPIPE SOFTWARE AB and GLG LIFE TECH, you can compare the effects of market volatilities on FORMPIPE SOFTWARE and GLG LIFE 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 FORMPIPE SOFTWARE with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORMPIPE SOFTWARE and GLG LIFE.
Diversification Opportunities for FORMPIPE SOFTWARE and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FORMPIPE and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FORMPIPE SOFTWARE AB and GLG LIFE TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLG LIFE TECH and FORMPIPE SOFTWARE 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 FORMPIPE SOFTWARE AB are associated (or correlated) with GLG LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLG LIFE TECH has no effect on the direction of FORMPIPE SOFTWARE i.e., FORMPIPE SOFTWARE and GLG LIFE go up and down completely randomly.
Pair Corralation between FORMPIPE SOFTWARE and GLG LIFE
If you would invest 205.00 in FORMPIPE SOFTWARE AB on October 12, 2024 and sell it today you would earn a total of 31.00 from holding FORMPIPE SOFTWARE AB or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
FORMPIPE SOFTWARE AB vs. GLG LIFE TECH
Performance |
| Timeline |
| FORMPIPE SOFTWARE |
| GLG LIFE TECH |
FORMPIPE SOFTWARE and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FORMPIPE SOFTWARE and GLG LIFE
The main advantage of trading using opposite FORMPIPE SOFTWARE and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORMPIPE SOFTWARE position performs unexpectedly, GLG LIFE 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 GLG LIFE will offset losses from the drop in GLG LIFE's long position.| FORMPIPE SOFTWARE vs. Harmony Gold Mining | FORMPIPE SOFTWARE vs. GungHo Online Entertainment | FORMPIPE SOFTWARE vs. Monument Mining Limited | FORMPIPE SOFTWARE vs. VARIOUS EATERIES LS |
| GLG LIFE vs. Take Two Interactive Software | GLG LIFE vs. Rayonier Advanced Materials | GLG LIFE vs. FORMPIPE SOFTWARE AB | GLG LIFE vs. The Yokohama Rubber |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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