Two Equities Correlation Analysis
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GL9.IR
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Glanbia PLC and NYSE Composite
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glanbia and NYSE is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Glanbia PLC and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Glanbia PLC 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 Glanbia PLC are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Glanbia PLC i.e., Glanbia PLC and NYSE Composite go up and down completely randomly.
Pair Corralation between Glanbia PLC and NYSE Composite
Assuming the 90 days trading horizon Glanbia PLC is expected to generate 2.73 times more return on investment than NYSE Composite. However, Glanbia PLC is 2.73 times more volatile than NYSE Composite. It trades about 0.2 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.01 per unit of risk. If you would invest 1,556 in Glanbia PLC on January 20, 2024 and sell it today you would earn a total of 214.00 from holding Glanbia PLC or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.67% |
| Values | Daily Returns |
Glanbia PLC vs. NYSE Composite
Performance |
| Timeline |
Glanbia PLC and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Glanbia PLC
Pair trading matchups for Glanbia PLC
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Glanbia PLC and NYSE Composite
The main advantage of trading using opposite Glanbia PLC and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glanbia PLC position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Glanbia PLC vs. Kingspan Group plc | Glanbia PLC vs. Smurfit Kappa Group | Glanbia PLC vs. Bank of Ireland |
| NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Shake Shack |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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