Correlation Between NAKED WINES and GLG LIFE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both NAKED WINES and GLG LIFE 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 NAKED WINES and GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAKED WINES PLC and GLG LIFE TECH, you can compare the effects of market volatilities on NAKED WINES and GLG LIFE 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 NAKED WINES with a short position of GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAKED WINES and GLG LIFE.

Diversification Opportunities for NAKED WINES and GLG LIFE

NAKEDGLGDiversified AwayNAKEDGLGDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between NAKED and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NAKED WINES PLC and GLG LIFE TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLG LIFE TECH and NAKED WINES 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 NAKED WINES PLC are associated (or correlated) with GLG LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLG LIFE TECH has no effect on the direction of NAKED WINES i.e., NAKED WINES and GLG LIFE go up and down completely randomly.

Pair Corralation between NAKED WINES and GLG LIFE

If you would invest  2.00  in GLG LIFE TECH on October 21, 2024 and sell it today you would earn a total of  0.00  from holding GLG LIFE TECH or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.36%
ValuesDaily Returns

NAKED WINES PLC  vs.  GLG LIFE TECH

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -25-20-15-10-50
JavaScript chart by amCharts 3.21.15MWJ 9LTN
       Timeline  
NAKED WINES PLC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days NAKED WINES PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.550.60.650.7
GLG LIFE TECH 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GLG LIFE TECH has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, GLG LIFE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.020.0205

NAKED WINES and GLG LIFE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.79-4.33-2.88-1.43-0.02171.282.593.895.2 0.0050.0100.0150.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15MWJ 9LTN
       Returns  

Pair Trading with NAKED WINES and GLG LIFE

The main advantage of trading using opposite NAKED WINES and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAKED WINES position performs unexpectedly, GLG LIFE 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 GLG LIFE will offset losses from the drop in GLG LIFE's long position.
The idea behind NAKED WINES PLC and GLG LIFE TECH 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world