Correlation Between GLG LIFE and Yihai International
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and Yihai International 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 Yihai International 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 Yihai International Holding, you can compare the effects of market volatilities on GLG LIFE and Yihai International 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 Yihai International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Yihai International.
Diversification Opportunities for GLG LIFE and Yihai International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and Yihai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and Yihai International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yihai International 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 Yihai International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yihai International has no effect on the direction of GLG LIFE i.e., GLG LIFE and Yihai International go up and down completely randomly.
Pair Corralation between GLG LIFE and Yihai International
If you would invest 164.00 in Yihai International Holding on December 5, 2024 and sell it today you would earn a total of 7.00 from holding Yihai International Holding or generate 4.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
GLG LIFE TECH vs. Yihai International Holding
Performance |
Timeline |
GLG LIFE TECH |
Yihai International |
GLG LIFE and Yihai International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GLG LIFE and Yihai International
The main advantage of trading using opposite GLG LIFE and Yihai International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, Yihai International 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 Yihai International will offset losses from the drop in Yihai International's long position.GLG LIFE vs. Prosiebensat 1 Media | GLG LIFE vs. Grupo Carso SAB | GLG LIFE vs. PARKEN Sport Entertainment | GLG LIFE vs. COMMERCIAL VEHICLE |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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