Correlation Between Glimpse and Verint Systems
Can any of the company-specific risk be diversified away by investing in both Glimpse and Verint Systems 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 Verint Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glimpse Group and Verint Systems, you can compare the effects of market volatilities on Glimpse and Verint Systems 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 Verint Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glimpse and Verint Systems.
Diversification Opportunities for Glimpse and Verint Systems
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glimpse and Verint is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and Verint Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verint Systems 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 Verint Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verint Systems has no effect on the direction of Glimpse i.e., Glimpse and Verint Systems go up and down completely randomly.
Pair Corralation between Glimpse and Verint Systems
Given the investment horizon of 90 days Glimpse Group is expected to under-perform the Verint Systems. In addition to that, Glimpse is 1.93 times more volatile than Verint Systems. It trades about -0.06 of its total potential returns per unit of risk. Verint Systems is currently generating about -0.03 per unit of volatility. If you would invest 3,635 in Verint Systems on August 26, 2024 and sell it today you would lose (1,192) from holding Verint Systems or give up 32.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glimpse Group vs. Verint Systems
Performance |
| Timeline |
| Glimpse Group |
| Verint Systems |
Glimpse and Verint Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glimpse and Verint Systems
The main advantage of trading using opposite Glimpse and Verint Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glimpse position performs unexpectedly, Verint Systems 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 Verint Systems will offset losses from the drop in Verint Systems' long position.| Glimpse vs. Zenvia Inc | Glimpse vs. authID Inc | Glimpse vs. Synchronoss Technologies | Glimpse vs. Apptech Corp |
| Verint Systems vs. GigaCloud Technology Class | Verint Systems vs. Arqit Quantum | Verint Systems vs. Telos Corp | Verint Systems vs. Cemtrex |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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