Correlation Between FAST RETAIL and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both FAST RETAIL 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 FAST RETAIL and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAST RETAIL ADR and GLG LIFE TECH, you can compare the effects of market volatilities on FAST RETAIL 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 FAST RETAIL with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAST RETAIL and GLG LIFE.
Diversification Opportunities for FAST RETAIL and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FAST and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FAST RETAIL ADR 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 FAST RETAIL 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 FAST RETAIL ADR 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 FAST RETAIL i.e., FAST RETAIL and GLG LIFE go up and down completely randomly.
Pair Corralation between FAST RETAIL and GLG LIFE
If you would invest 3,080 in FAST RETAIL ADR on September 25, 2024 and sell it today you would earn a total of 100.00 from holding FAST RETAIL ADR or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAST RETAIL ADR vs. GLG LIFE TECH
Performance |
| Timeline |
| FAST RETAIL ADR |
| GLG LIFE TECH |
FAST RETAIL and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAST RETAIL and GLG LIFE
The main advantage of trading using opposite FAST RETAIL and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAST RETAIL 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.| FAST RETAIL vs. FAST RETAILCOSPHDR 1 | FAST RETAIL vs. Ross Stores | FAST RETAIL vs. Stitch Fix | FAST RETAIL vs. AOYAMA TRADING |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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