Correlation Between Glimpse and Confluent

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

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

Diversification Opportunities for Glimpse and Confluent

0.77

Correlation Coefficient

Glimpse  Confluent

Poor diversification

The 3 months correlation between Glimpse and Confluent is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and Confluent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Confluent 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 Confluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Confluent has no effect on the direction of Glimpse i.e., Glimpse and Confluent go up and down completely randomly.

Pair Corralation between Glimpse and Confluent

Given the investment horizon of 90 days Glimpse Group is expected to under-perform the Confluent. But the stock apears to be less risky and, when comparing its historical volatility, Glimpse Group is 1.13 times less risky than Confluent. The stock trades about -0.1 of its potential returns per unit of risk. The Confluent is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  2,893  in Confluent on January 27, 2025 and sell it today you would lose (480.00) from holding Confluent or give up 16.59% 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.  Confluent

Glimpse Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Glimpse Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in May 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Confluent

Risk-Adjusted Performance

Very Weak

Over the last 90 days Confluent has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential 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 Confluent

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

The idea behind Glimpse Group and Confluent 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.