Correlation Between GLG LIFE and Barsele Minerals

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Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Barsele Minerals 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 Barsele Minerals 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 Barsele Minerals Corp, you can compare the effects of market volatilities on GLG LIFE and Barsele Minerals 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 Barsele Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Barsele Minerals.

Diversification Opportunities for GLG LIFE and Barsele Minerals

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GLG and Barsele is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Barsele Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barsele Minerals Corp 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 Barsele Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barsele Minerals Corp has no effect on the direction of GLG LIFE i.e., GLG LIFE and Barsele Minerals go up and down completely randomly.

Pair Corralation between GLG LIFE and Barsele Minerals

If you would invest  1.40  in GLG LIFE TECH on October 4, 2024 and sell it today you would earn a total of  0.60  from holding GLG LIFE TECH or generate 42.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

GLG LIFE TECH  vs.  Barsele Minerals Corp

 Performance 
       Timeline  
GLG LIFE TECH 

Risk-Adjusted Performance

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Over the last 90 days GLG LIFE TECH has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, GLG LIFE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Barsele Minerals Corp 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days Barsele Minerals Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Barsele Minerals is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

GLG LIFE and Barsele Minerals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GLG LIFE and Barsele Minerals

The main advantage of trading using opposite GLG LIFE and Barsele Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Barsele Minerals 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 Barsele Minerals will offset losses from the drop in Barsele Minerals' long position.
The idea behind GLG LIFE TECH and Barsele Minerals Corp 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.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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