Correlation Between Glimpse and Data Storage

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

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

Diversification Opportunities for Glimpse and Data Storage

-0.56

Correlation Coefficient

Glimpse  Data Storage

Excellent diversification

The 3 months correlation between Glimpse and Data is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and Data Storage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Storage Corp 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 Data Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Storage Corp has no effect on the direction of Glimpse i.e., Glimpse and Data Storage go up and down completely randomly.

Pair Corralation between Glimpse and Data Storage

Given the investment horizon of 90 days Glimpse Group is expected to generate 2.99 times more return on investment than Data Storage. However, Glimpse is 2.99 times more volatile than Data Storage Corp. It trades about 0.07 of its potential returns per unit of risk. Data Storage Corp is currently generating about -0.09 per unit of risk. If you would invest  133.00  in Glimpse Group on August 8, 2025 and sell it today you would earn a total of  19.00  from holding Glimpse Group or generate 14.29% return on investment over 90 days.

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

Glimpse Group  vs.  Data Storage Corp

Glimpse Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Glimpse Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Glimpse reported solid returns over the last few months and may actually be approaching a breakup point.

Data Storage Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Data Storage Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Glimpse and Data Storage

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

The idea behind Glimpse Group and Data Storage Corp 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.