Correlation Between Glimpse and Yext

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

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

Diversification Opportunities for Glimpse and Yext

-0.75

Correlation Coefficient

Glimpse  Yext

Pay attention - limited upside

The 3 months correlation between Glimpse and Yext is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Glimpse Group and Yext Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yext Inc 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 Yext. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yext Inc has no effect on the direction of Glimpse i.e., Glimpse and Yext go up and down completely randomly.

Pair Corralation between Glimpse and Yext

Given the investment horizon of 90 days Glimpse Group is expected to under-perform the Yext. In addition to that, Glimpse is 2.09 times more volatile than Yext Inc. It trades about -0.04 of its total potential returns per unit of risk. Yext Inc is currently generating about 0.32 per unit of volatility. If you would invest  481.00  in Yext Inc on September 2, 2024 and sell it today you would earn a total of  345.00  from holding Yext Inc or generate 71.73% 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.  Yext Inc

Glimpse Group

Risk-Adjusted Performance

0 of 100

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 abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Yext Inc

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Yext Inc are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Yext unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Glimpse and Yext

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

The idea behind Glimpse Group and Yext Inc 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.