Correlation Between Glimpse and Avepoint

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

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

Diversification Opportunities for Glimpse and Avepoint

-0.32

Correlation Coefficient

Glimpse  Avepoint

Very good diversification

The 3 months correlation between Glimpse and Avepoint is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and Avepoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avepoint and Glimpse 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 Glimpse Group are associated (or correlated) with Avepoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avepoint has no effect on the direction of Glimpse i.e., Glimpse and Avepoint go up and down completely randomly.

Pair Corralation between Glimpse and Avepoint

Given the investment horizon of 90 days Glimpse Group is expected to generate 6.16 times more return on investment than Avepoint. However, Glimpse is 6.16 times more volatile than Avepoint. It trades about 0.1 of its potential returns per unit of risk. Avepoint is currently generating about -0.1 per unit of risk. If you would invest  88.00  in Glimpse Group on December 2, 2024 and sell it today you would earn a total of  41.00  from holding Glimpse Group or generate 46.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Glimpse Group  vs.  Avepoint

Glimpse Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Glimpse Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Glimpse reported solid returns over the last few months and may actually be approaching a breakup point.

Avepoint

Risk-Adjusted Performance

Very Weak

Over the last 90 days Avepoint has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Glimpse and Avepoint

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

The idea behind Glimpse Group and Avepoint 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..