Correlation Between MicroAlgo and Glimpse

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

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

Diversification Opportunities for MicroAlgo and Glimpse

-0.21

Correlation Coefficient

MicroAlgo  Glimpse

Very good diversification

The 3 months correlation between MicroAlgo and Glimpse is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding MicroAlgo and Glimpse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glimpse Group and MicroAlgo 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 MicroAlgo are associated (or correlated) with Glimpse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glimpse Group has no effect on the direction of MicroAlgo i.e., MicroAlgo and Glimpse go up and down completely randomly.

Pair Corralation between MicroAlgo and Glimpse

Given the investment horizon of 90 days MicroAlgo is expected to under-perform the Glimpse. In addition to that, MicroAlgo is 2.36 times more volatile than Glimpse Group. It trades about -0.28 of its total potential returns per unit of risk. Glimpse Group is currently generating about 0.12 per unit of volatility. If you would invest  114.00  in Glimpse Group on April 30, 2025 and sell it today you would earn a total of  42.00  from holding Glimpse Group or generate 36.84% return on investment over 90 days.

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

MicroAlgo  vs.  Glimpse Group

MicroAlgo

Risk-Adjusted Performance

Very Weak

Over the last 90 days MicroAlgo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Glimpse Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Glimpse Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Glimpse reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MicroAlgo and Glimpse

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

The idea behind MicroAlgo and Glimpse Group 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.