Correlation Between Glimpse and MicroAlgo

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

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

Diversification Opportunities for Glimpse and MicroAlgo

-0.65

Correlation Coefficient

Glimpse  MicroAlgo

Excellent diversification

The 3 months correlation between Glimpse and MicroAlgo is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo 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 MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of Glimpse i.e., Glimpse and MicroAlgo go up and down completely randomly.

Pair Corralation between Glimpse and MicroAlgo

Given the investment horizon of 90 days Glimpse Group is expected to generate 0.4 times more return on investment than MicroAlgo. However, Glimpse Group is 2.48 times less risky than MicroAlgo. It trades about 0.14 of its potential returns per unit of risk. MicroAlgo is currently generating about -0.29 per unit of risk. If you would invest  112.00  in Glimpse Group on April 28, 2025 and sell it today you would earn a total of  48.00  from holding Glimpse Group or generate 42.86% return on investment over 90 days.

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

Glimpse Group  vs.  MicroAlgo

Glimpse Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Glimpse Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Glimpse reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Glimpse and MicroAlgo

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

The idea behind Glimpse Group and MicroAlgo 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.