Correlation Between Glory Star and MultiMetaVerse Holdings

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

Diversification Opportunities for Glory Star and MultiMetaVerse Holdings

-0.25

Correlation Coefficient

Glory Star  MultiMetaVerse Holdings

Very good diversification

The 3 months correlation between Glory and MultiMetaVerse is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New and MultiMetaVerse Holdings Limite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MultiMetaVerse Holdings 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 MultiMetaVerse Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MultiMetaVerse Holdings has no effect on the direction of Glory Star i.e., Glory Star and MultiMetaVerse Holdings go up and down completely randomly.

Pair Corralation between Glory Star and MultiMetaVerse Holdings

Assuming the 90 days horizon Glory Star New is expected to generate 6.84 times more return on investment than MultiMetaVerse Holdings. However, Glory Star is 6.84 times more volatile than MultiMetaVerse Holdings Limited. It trades about 0.09 of its potential returns per unit of risk. MultiMetaVerse Holdings Limited is currently generating about 0.01 per unit of risk. If you would invest  0.50  in Glory Star New on October 21, 2024 and sell it today you would lose (0.38) from holding Glory Star New or give up 76.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	84.68%
Values	Daily Returns

Glory Star New  vs.  MultiMetaVerse Holdings Limite

Glory Star New

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Glory Star New are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Glory Star showed solid returns over the last few months and may actually be approaching a breakup point.

MultiMetaVerse Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MultiMetaVerse Holdings Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, MultiMetaVerse Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Glory Star and MultiMetaVerse Holdings

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

The idea behind Glory Star New and MultiMetaVerse Holdings Limited 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 Stocks Directory module to find actively traded stocks across global markets.