Correlation Between XRP and GLT Old

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

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

Diversification Opportunities for XRP and GLT Old

0.0

Correlation Coefficient

XRP  GLT Old

Pay attention - limited upside

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

Pair Corralation between XRP and GLT Old

If you would invest  231.00  in XRP on December 17, 2024 and sell it today you would earn a total of  8.00  from holding XRP or generate 3.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

XRP  vs.  GLT Old

XRP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in XRP are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, XRP may actually be approaching a critical reversion point that can send shares even higher in April 2025.

GLT Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days GLT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, GLT Old is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with XRP and GLT Old

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

The idea behind XRP and GLT Old 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 Transaction History module to view history of all your transactions and understand their impact on performance.