Correlation Between GLENLN and Arrow Electronics
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By analyzing existing cross correlation between GLENLN 1625 27 APR 26 and Arrow Electronics, you can compare the effects of market volatilities on GLENLN and Arrow Electronics 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 Arrow Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLENLN and Arrow Electronics.
Diversification Opportunities for GLENLN and Arrow Electronics
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GLENLN and Arrow is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding GLENLN 1625 27 APR 26 and Arrow Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Electronics 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 27 APR 26 are associated (or correlated) with Arrow Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Electronics has no effect on the direction of GLENLN i.e., GLENLN and Arrow Electronics go up and down completely randomly.
Pair Corralation between GLENLN and Arrow Electronics
Assuming the 90 days trading horizon GLENLN is expected to generate 2.42 times less return on investment than Arrow Electronics. But when comparing it to its historical volatility, GLENLN 1625 27 APR 26 is 2.51 times less risky than Arrow Electronics. It trades about 0.01 of its potential returns per unit of risk. Arrow Electronics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 11,801 in Arrow Electronics on September 2, 2024 and sell it today you would earn a total of 215.00 from holding Arrow Electronics or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 68.55% |
| Values | Daily Returns |
GLENLN 1625 27 APR 26 vs. Arrow Electronics
Performance |
| Timeline |
| GLENLN 1625 27 |
| Arrow Electronics |
GLENLN and Arrow Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLENLN and Arrow Electronics
The main advantage of trading using opposite GLENLN and Arrow Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLENLN position performs unexpectedly, Arrow Electronics 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 Arrow Electronics will offset losses from the drop in Arrow Electronics' long position.The idea behind GLENLN 1625 27 APR 26 and Arrow Electronics 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.| Arrow Electronics vs. Avnet Inc | Arrow Electronics vs. Synnex | Arrow Electronics vs. Ingram Micro Holding | Arrow Electronics vs. Insight Enterprises |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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