Correlation Between NYSE Composite and GLCN
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and GLCN 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 NYSE Composite and GLCN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and GLCN, you can compare the effects of market volatilities on NYSE Composite and GLCN 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 NYSE Composite with a short position of GLCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and GLCN.
Diversification Opportunities for NYSE Composite and GLCN
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between NYSE and GLCN is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and GLCN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLCN and NYSE Composite 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 NYSE Composite are associated (or correlated) with GLCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLCN has no effect on the direction of NYSE Composite i.e., NYSE Composite and GLCN go up and down completely randomly.
Pair Corralation between NYSE Composite and GLCN
If you would invest 1,909,542 in NYSE Composite on November 3, 2024 and sell it today you would earn a total of 90,340 from holding NYSE Composite or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. GLCN
Performance |
| Timeline |
NYSE Composite and GLCN Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
GLCN
Pair trading matchups for GLCN
Pair Trading with NYSE Composite and GLCN
The main advantage of trading using opposite NYSE Composite and GLCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, GLCN 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 GLCN will offset losses from the drop in GLCN's long position.| NYSE Composite vs. Arrow Electronics | NYSE Composite vs. Cirmaker Technology | NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Weibo Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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