Correlation Between Glory Star and Beyond Commerce

Can any of the company-specific risk be diversified away by investing in both Glory Star and Beyond Commerce 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 Glory Star and Beyond Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Glory Star New and Beyond Commerce, you can compare the effects of market volatilities on Glory Star and Beyond Commerce 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 Glory Star with a short position of Beyond Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glory Star and Beyond Commerce.

Diversification Opportunities for Glory Star and Beyond Commerce

-0.28

Correlation Coefficient

Glory Star  Beyond Commerce

Very good diversification

The 3 months correlation between Glory and Beyond is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New and Beyond Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beyond Commerce and Glory Star 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 Glory Star New are associated (or correlated) with Beyond Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beyond Commerce has no effect on the direction of Glory Star i.e., Glory Star and Beyond Commerce go up and down completely randomly.

Pair Corralation between Glory Star and Beyond Commerce

If you would invest  0.00  in Beyond Commerce on September 3, 2024 and sell it today you would earn a total of  0.02  from holding Beyond Commerce or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Glory Star New  vs.  Beyond Commerce

Glory Star New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glory Star New has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Glory Star is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Beyond Commerce

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Beyond Commerce are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Beyond Commerce exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Glory Star and Beyond Commerce

The main advantage of trading using opposite Glory Star and Beyond Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glory Star position performs unexpectedly, Beyond Commerce 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 Beyond Commerce will offset losses from the drop in Beyond Commerce's long position.

The idea behind Glory Star New and Beyond Commerce 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.