Correlation Between Schweizer Electronic and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both Schweizer Electronic 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 Schweizer Electronic and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweizer Electronic AG and GLG LIFE TECH, you can compare the effects of market volatilities on Schweizer Electronic 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 Schweizer Electronic with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweizer Electronic and GLG LIFE.
Diversification Opportunities for Schweizer Electronic and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schweizer and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Schweizer Electronic AG 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 Schweizer Electronic 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 Schweizer Electronic AG 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 Schweizer Electronic i.e., Schweizer Electronic and GLG LIFE go up and down completely randomly.
Pair Corralation between Schweizer Electronic and GLG LIFE
Assuming the 90 days horizon Schweizer Electronic AG is expected to under-perform the GLG LIFE. But the stock apears to be less risky and, when comparing its historical volatility, Schweizer Electronic AG is 20.89 times less risky than GLG LIFE. The stock trades about -0.11 of its potential returns per unit of risk. The GLG LIFE TECH is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.30 in GLG LIFE TECH on September 14, 2024 and sell it today you would earn a total of 0.70 from holding GLG LIFE TECH or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweizer Electronic AG vs. GLG LIFE TECH
Performance |
| Timeline |
| Schweizer Electronic |
| GLG LIFE TECH |
Schweizer Electronic and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweizer Electronic and GLG LIFE
The main advantage of trading using opposite Schweizer Electronic and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweizer Electronic 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.| Schweizer Electronic vs. Benchmark Electronics | Schweizer Electronic vs. Superior Plus Corp | Schweizer Electronic vs. SIVERS SEMICONDUCTORS AB | Schweizer Electronic vs. Norsk Hydro ASA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |