Correlation Between GLG LIFE and NAKED WINES

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and NAKED WINES 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 NAKED WINES 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 NAKED WINES PLC, you can compare the effects of market volatilities on GLG LIFE and NAKED WINES 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 NAKED WINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and NAKED WINES.

Diversification Opportunities for GLG LIFE and NAKED WINES

GLGNAKEDDiversified AwayGLGNAKEDDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between GLG LIFE and NAKED WINES

If you would invest  2.00  in GLG LIFE TECH on October 21, 2024 and sell it today you would earn a total of  0.00  from holding GLG LIFE TECH or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.36%
ValuesDaily Returns

GLG LIFE TECH  vs.  NAKED WINES PLC

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -25-20-15-10-50
JavaScript chart by amCharts 3.21.159LTN MWJ
       Timeline  
GLG LIFE TECH 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
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 current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.020.0205
NAKED WINES PLC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days NAKED WINES PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.550.60.650.7

GLG LIFE and NAKED WINES Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.0050.0100.0150.0200.0250.0300.035
JavaScript chart by amCharts 3.21.159LTN MWJ
       Returns  

Pair Trading with GLG LIFE and NAKED WINES

The main advantage of trading using opposite GLG LIFE and NAKED WINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, NAKED WINES 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 NAKED WINES will offset losses from the drop in NAKED WINES's long position.
The idea behind GLG LIFE TECH and NAKED WINES PLC 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.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance