Correlation Between Glory Star and Global Payout

Can any of the company-specific risk be diversified away by investing in both Glory Star and Global Payout 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 Global Payout 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 Global Payout, you can compare the effects of market volatilities on Glory Star and Global Payout 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 Global Payout. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glory Star and Global Payout.

Diversification Opportunities for Glory Star and Global Payout

-0.41

Correlation Coefficient

Glory Star  Global Payout

Very good diversification

The 3 months correlation between Glory and Global is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New and Global Payout in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payout 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 Global Payout. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payout has no effect on the direction of Glory Star i.e., Glory Star and Global Payout go up and down completely randomly.

Pair Corralation between Glory Star and Global Payout

If you would invest  50.00  in Glory Star New on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Glory Star New or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Glory Star New  vs.  Global Payout

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.

Global Payout

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Payout has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Glory Star and Global Payout

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

The idea behind Glory Star New and Global Payout 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.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.