Correlation Between Glory Star and MGO Global
Can any of the company-specific risk be diversified away by investing in both Glory Star and MGO Global 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 Glory Star and MGO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glory Star New and MGO Global Common, you can compare the effects of market volatilities on Glory Star and MGO Global 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 Glory Star with a short position of MGO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glory Star and MGO Global.
Diversification Opportunities for Glory Star and MGO Global
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glory and MGO is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New and MGO Global Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGO Global Common and Glory Star 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 Glory Star New are associated (or correlated) with MGO Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGO Global Common has no effect on the direction of Glory Star i.e., Glory Star and MGO Global go up and down completely randomly.
Pair Corralation between Glory Star and MGO Global
Assuming the 90 days horizon Glory Star New is expected to generate 2.22 times more return on investment than MGO Global. However, Glory Star is 2.22 times more volatile than MGO Global Common. It trades about 0.18 of its potential returns per unit of risk. MGO Global Common is currently generating about 0.17 per unit of risk. If you would invest 0.12 in Glory Star New on November 18, 2024 and sell it today you would lose (0.03) from holding Glory Star New or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Glory Star New vs. MGO Global Common
Performance |
| Timeline |
| Glory Star New |
| MGO Global Common |
Glory Star and MGO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glory Star and MGO Global
The main advantage of trading using opposite Glory Star and MGO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glory Star position performs unexpectedly, MGO Global 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 MGO Global will offset losses from the drop in MGO Global's long position.The idea behind Glory Star New and MGO Global Common 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.| MGO Global vs. Baosheng Media Group | MGO Global vs. National CineMedia | MGO Global vs. Glory Star New | MGO Global vs. Impact Fusion International |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |