Correlation Between GLENLN and Universal Display

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

By analyzing existing cross correlation between GLENLN 1625 01 SEP 25 and Universal Display, you can compare the effects of market volatilities on GLENLN and Universal Display 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 GLENLN with a short position of Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLENLN and Universal Display.

Diversification Opportunities for GLENLN and Universal Display

0.0

Correlation Coefficient

GLENLN  Universal Display

Pay attention - limited upside

The 3 months correlation between GLENLN and Universal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLENLN 1625 01 SEP 25 and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display and GLENLN 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 GLENLN 1625 01 SEP 25 are associated (or correlated) with Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of GLENLN i.e., GLENLN and Universal Display go up and down completely randomly.

Pair Corralation between GLENLN and Universal Display

If you would invest  0.00  in GLENLN 1625 01 SEP 25 on September 5, 2024 and sell it today you would earn a total of  0.00  from holding GLENLN 1625 01 SEP 25 or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

GLENLN 1625 01 SEP 25  vs.  Universal Display

GLENLN 1625 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GLENLN 1625 01 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GLENLN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Universal Display

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Universal Display has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with GLENLN and Universal Display

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

The idea behind GLENLN 1625 01 SEP 25 and Universal Display 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.