Correlation Between Global E and Glucose Health
Can any of the company-specific risk be diversified away by investing in both Global E and Glucose Health 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 Global E and Glucose Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Glucose Health, you can compare the effects of market volatilities on Global E and Glucose Health 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 Global E with a short position of Glucose Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Glucose Health.
Diversification Opportunities for Global E and Glucose Health
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Glucose is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and Glucose Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glucose Health and Global E 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 Global E Online are associated (or correlated) with Glucose Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glucose Health has no effect on the direction of Global E i.e., Global E and Glucose Health go up and down completely randomly.
Pair Corralation between Global E and Glucose Health
Given the investment horizon of 90 days Global E Online is expected to generate 0.41 times more return on investment than Glucose Health. However, Global E Online is 2.42 times less risky than Glucose Health. It trades about -0.14 of its potential returns per unit of risk. Glucose Health is currently generating about -0.07 per unit of risk. If you would invest 5,375 in Global E Online on December 2, 2024 and sell it today you would lose (1,113) from holding Global E Online or give up 20.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Global E Online vs. Glucose Health
Performance |
Timeline |
Global E Online |
Glucose Health |
Global E and Glucose Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global E and Glucose Health
The main advantage of trading using opposite Global E and Glucose Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E position performs unexpectedly, Glucose Health 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 Glucose Health will offset losses from the drop in Glucose Health's long position.Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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