Correlation Between Glimpse and Palantir Technologies
Can any of the company-specific risk be diversified away by investing in both Glimpse and Palantir Technologies 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 Glimpse and Palantir Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glimpse Group and Palantir Technologies, you can compare the effects of market volatilities on Glimpse and Palantir Technologies 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 Glimpse with a short position of Palantir Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glimpse and Palantir Technologies.
Diversification Opportunities for Glimpse and Palantir Technologies
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glimpse and Palantir is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and Palantir Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palantir Technologies and Glimpse 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 Glimpse Group are associated (or correlated) with Palantir Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palantir Technologies has no effect on the direction of Glimpse i.e., Glimpse and Palantir Technologies go up and down completely randomly.
Pair Corralation between Glimpse and Palantir Technologies
Given the investment horizon of 90 days Glimpse Group is expected to under-perform the Palantir Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Glimpse Group is 1.09 times less risky than Palantir Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Palantir Technologies is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 4,486 in Palantir Technologies on August 26, 2024 and sell it today you would earn a total of 1,949 from holding Palantir Technologies or generate 43.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glimpse Group vs. Palantir Technologies
Performance |
| Timeline |
| Glimpse Group |
| Palantir Technologies |
Glimpse and Palantir Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glimpse and Palantir Technologies
The main advantage of trading using opposite Glimpse and Palantir Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glimpse position performs unexpectedly, Palantir Technologies 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 Palantir Technologies will offset losses from the drop in Palantir Technologies' long position.| Glimpse vs. GigaCloud Technology Class | Glimpse vs. Arqit Quantum | Glimpse vs. Telos Corp | Glimpse vs. Cemtrex |
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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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