Correlation Between GLENLN and Universal Display
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By analyzing existing cross correlation between GLENLN 1625 01 SEP 25 and Universal Display, you can compare the effects of market volatilities on GLENLN and Universal Display 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 GLENLN with a short position of Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLENLN and Universal Display.
Diversification Opportunities for GLENLN and Universal Display
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GLENLN and Universal is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding GLENLN 1625 01 SEP 25 and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display and GLENLN 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 GLENLN 1625 01 SEP 25 are associated (or correlated) with Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of GLENLN i.e., GLENLN and Universal Display go up and down completely randomly.
Pair Corralation between GLENLN and Universal Display
Assuming the 90 days trading horizon GLENLN 1625 01 SEP 25 is expected to generate 0.37 times more return on investment than Universal Display. However, GLENLN 1625 01 SEP 25 is 2.7 times less risky than Universal Display. It trades about -0.23 of its potential returns per unit of risk. Universal Display is currently generating about -0.22 per unit of risk. If you would invest 9,747 in GLENLN 1625 01 SEP 25 on September 4, 2024 and sell it today you would lose (217.00) from holding GLENLN 1625 01 SEP 25 or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
GLENLN 1625 01 SEP 25 vs. Universal Display
Performance |
| Timeline |
| GLENLN 1625 01 |
| Universal Display |
GLENLN and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLENLN and Universal Display
The main advantage of trading using opposite GLENLN and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLENLN position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.The idea behind GLENLN 1625 01 SEP 25 and Universal Display pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Universal Display vs. Plexus Corp | Universal Display vs. Methode Electronics | Universal Display vs. Benchmark Electronics | Universal Display vs. Bel Fuse A |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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