Correlation Between Glimpse and BM European
Can any of the company-specific risk be diversified away by investing in both Glimpse and BM European 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 BM European into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glimpse Group and BM European Value, you can compare the effects of market volatilities on Glimpse and BM European 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 BM European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glimpse and BM European.
Diversification Opportunities for Glimpse and BM European
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glimpse and BMRRY is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and BM European Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BM European Value 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 BM European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BM European Value has no effect on the direction of Glimpse i.e., Glimpse and BM European go up and down completely randomly.
Pair Corralation between Glimpse and BM European
Given the investment horizon of 90 days Glimpse Group is expected to generate 1.54 times more return on investment than BM European. However, Glimpse is 1.54 times more volatile than BM European Value. It trades about -0.01 of its potential returns per unit of risk. BM European Value is currently generating about -0.11 per unit of risk. If you would invest 142.00 in Glimpse Group on September 3, 2025 and sell it today you would lose (18.00) from holding Glimpse Group or give up 12.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glimpse Group vs. BM European Value
Performance |
| Timeline |
| Glimpse Group |
| BM European Value |
Glimpse and BM European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glimpse and BM European
The main advantage of trading using opposite Glimpse and BM European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glimpse position performs unexpectedly, BM European 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 BM European will offset losses from the drop in BM European's long position.| Glimpse vs. Granite Construction Incorporated | Glimpse vs. Titan Machinery | Glimpse vs. North American Construction | Glimpse vs. Agriculture Natural Solutions |
| BM European vs. Golden Energy Offshore | BM European vs. PSI Software AG | BM European vs. Granite Construction Incorporated | BM European vs. Future Farm Technologies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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