Correlation Between GLG LIFE and Wynn Resorts
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Wynn Resorts 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 Wynn Resorts 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 Wynn Resorts Limited, you can compare the effects of market volatilities on GLG LIFE and Wynn Resorts 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 Wynn Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Wynn Resorts.
Diversification Opportunities for GLG LIFE and Wynn Resorts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and Wynn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Wynn Resorts Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Resorts Limited 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 Wynn Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Resorts Limited has no effect on the direction of GLG LIFE i.e., GLG LIFE and Wynn Resorts go up and down completely randomly.
Pair Corralation between GLG LIFE and Wynn Resorts
If you would invest 2.00 in GLG LIFE TECH on October 11, 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 Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GLG LIFE TECH vs. Wynn Resorts Limited
Performance |
Timeline |
GLG LIFE TECH |
Wynn Resorts Limited |
GLG LIFE and Wynn Resorts Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GLG LIFE and Wynn Resorts
The main advantage of trading using opposite GLG LIFE and Wynn Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Wynn Resorts 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 Wynn Resorts will offset losses from the drop in Wynn Resorts' long position.GLG LIFE vs. Unity Software | GLG LIFE vs. Nexstar Media Group | GLG LIFE vs. AXWAY SOFTWARE EO | GLG LIFE vs. Townsquare Media |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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