Correlation Between GLG LIFE and AEON STORES
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and AEON STORES 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 GLG LIFE and AEON STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLG LIFE TECH and AEON STORES, you can compare the effects of market volatilities on GLG LIFE and AEON STORES 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 GLG LIFE with a short position of AEON STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and AEON STORES.
Diversification Opportunities for GLG LIFE and AEON STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and AEON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and AEON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON STORES and GLG LIFE 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 GLG LIFE TECH are associated (or correlated) with AEON STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON STORES has no effect on the direction of GLG LIFE i.e., GLG LIFE and AEON STORES go up and down completely randomly.
Pair Corralation between GLG LIFE and AEON STORES
If you would invest 5.65 in AEON STORES on December 28, 2024 and sell it today you would earn a total of 0.25 from holding AEON STORES or generate 4.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
GLG LIFE TECH vs. AEON STORES
Performance |
Timeline |
GLG LIFE TECH |
AEON STORES |
GLG LIFE and AEON STORES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GLG LIFE and AEON STORES
The main advantage of trading using opposite GLG LIFE and AEON STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, AEON STORES 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 AEON STORES will offset losses from the drop in AEON STORES's long position.GLG LIFE vs. Lendlease Group | GLG LIFE vs. SUN ART RETAIL | GLG LIFE vs. CarsalesCom | GLG LIFE vs. GRENKELEASING Dusseldorf |
AEON STORES vs. THAI BEVERAGE | AEON STORES vs. XLMedia PLC | AEON STORES vs. AcadeMedia AB | AEON STORES vs. Seven West Media |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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