Correlation Between FLOW TRADERS and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS 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 FLOW TRADERS and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLOW TRADERS LTD and GLG LIFE TECH, you can compare the effects of market volatilities on FLOW TRADERS 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 FLOW TRADERS with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and GLG LIFE.
Diversification Opportunities for FLOW TRADERS and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FLOW and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD 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 FLOW TRADERS 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 FLOW TRADERS LTD 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 FLOW TRADERS i.e., FLOW TRADERS and GLG LIFE go up and down completely randomly.
Pair Corralation between FLOW TRADERS and GLG LIFE
If you would invest 2,100 in FLOW TRADERS LTD on September 14, 2024 and sell it today you would earn a total of 6.00 from holding FLOW TRADERS LTD or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. GLG LIFE TECH
Performance |
| Timeline |
| FLOW TRADERS LTD |
| GLG LIFE TECH |
FLOW TRADERS and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and GLG LIFE
The main advantage of trading using opposite FLOW TRADERS and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS 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.| FLOW TRADERS vs. Superior Plus Corp | FLOW TRADERS vs. SIVERS SEMICONDUCTORS AB | FLOW TRADERS vs. CHINA HUARONG ENERHD 50 | FLOW TRADERS vs. NORDIC HALIBUT AS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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