Correlation Between Platinum Investment and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both Platinum Investment 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 Platinum Investment and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Investment Management and GLG LIFE TECH, you can compare the effects of market volatilities on Platinum Investment 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 Platinum Investment with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and GLG LIFE.
Diversification Opportunities for Platinum Investment and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Platinum and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management 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 Platinum Investment 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 Platinum Investment Management 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 Platinum Investment i.e., Platinum Investment and GLG LIFE go up and down completely randomly.
Pair Corralation between Platinum Investment and GLG LIFE
If you would invest 41.00 in Platinum Investment Management on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Platinum Investment Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Platinum Investment Management vs. GLG LIFE TECH
Performance |
| Timeline |
| Platinum Investment |
| GLG LIFE TECH |
Platinum Investment and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and GLG LIFE
The main advantage of trading using opposite Platinum Investment and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment 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.| Platinum Investment vs. ARISTOCRAT LEISURE | Platinum Investment vs. United Utilities Group | Platinum Investment vs. PLAYMATES TOYS | Platinum Investment vs. TRAVEL LEISURE DL 01 |
| GLG LIFE vs. East Africa Metals | GLG LIFE vs. ADRIATIC METALS LS 013355 | GLG LIFE vs. Nippon Light Metal | GLG LIFE vs. Air Transport Services |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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