Correlation Between Laureate Education and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both Laureate Education 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 Laureate Education and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laureate Education and GLG LIFE TECH, you can compare the effects of market volatilities on Laureate Education 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 Laureate Education with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laureate Education and GLG LIFE.
Diversification Opportunities for Laureate Education and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Laureate and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Laureate Education 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 Laureate Education 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 Laureate Education 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 Laureate Education i.e., Laureate Education and GLG LIFE go up and down completely randomly.
Pair Corralation between Laureate Education and GLG LIFE
If you would invest 1,490 in Laureate Education on October 18, 2024 and sell it today you would earn a total of 270.00 from holding Laureate Education or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laureate Education vs. GLG LIFE TECH
Performance |
| Timeline |
| Laureate Education |
| GLG LIFE TECH |
Laureate Education and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laureate Education and GLG LIFE
The main advantage of trading using opposite Laureate Education and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laureate Education 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.| Laureate Education vs. Singapore Airlines Limited | Laureate Education vs. Singapore Telecommunications Limited | Laureate Education vs. ecotel communication ag | Laureate Education vs. HUTCHISON TELECOMM |
| GLG LIFE vs. DEVRY EDUCATION GRP | GLG LIFE vs. DeVry Education Group | GLG LIFE vs. Laureate Education | GLG LIFE vs. Astral Foods Limited |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |