Correlation Between MARKET VECTR and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both MARKET VECTR 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 MARKET VECTR and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MARKET VECTR RETAIL and GLG LIFE TECH, you can compare the effects of market volatilities on MARKET VECTR 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 MARKET VECTR with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKET VECTR and GLG LIFE.
Diversification Opportunities for MARKET VECTR and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MARKET and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MARKET VECTR RETAIL 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 MARKET VECTR 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 MARKET VECTR RETAIL 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 MARKET VECTR i.e., MARKET VECTR and GLG LIFE go up and down completely randomly.
Pair Corralation between MARKET VECTR and GLG LIFE
If you would invest 22,045 in MARKET VECTR RETAIL on October 20, 2024 and sell it today you would earn a total of 385.00 from holding MARKET VECTR RETAIL or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
MARKET VECTR RETAIL vs. GLG LIFE TECH
Performance |
| Timeline |
| MARKET VECTR RETAIL |
| GLG LIFE TECH |
MARKET VECTR and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MARKET VECTR and GLG LIFE
The main advantage of trading using opposite MARKET VECTR and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKET VECTR 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.| MARKET VECTR vs. Japan Tobacco | MARKET VECTR vs. VITEC SOFTWARE GROUP | MARKET VECTR vs. Kingdee International Software | MARKET VECTR vs. CARSALESCOM |
| GLG LIFE vs. Axway Software SA | GLG LIFE vs. VITEC SOFTWARE GROUP | GLG LIFE vs. NEW MILLENNIUM IRON | GLG LIFE vs. Khiron Life Sciences |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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