Correlation Between Gloria Material and EirGenix
Can any of the company-specific risk be diversified away by investing in both Gloria Material and EirGenix 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 Gloria Material and EirGenix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gloria Material Technology and EirGenix, you can compare the effects of market volatilities on Gloria Material and EirGenix 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 Gloria Material with a short position of EirGenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gloria Material and EirGenix.
Diversification Opportunities for Gloria Material and EirGenix
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gloria and EirGenix is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gloria Material Technology and EirGenix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EirGenix and Gloria Material 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 Gloria Material Technology are associated (or correlated) with EirGenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EirGenix has no effect on the direction of Gloria Material i.e., Gloria Material and EirGenix go up and down completely randomly.
Pair Corralation between Gloria Material and EirGenix
Assuming the 90 days trading horizon Gloria Material Technology is expected to generate 0.77 times more return on investment than EirGenix. However, Gloria Material Technology is 1.3 times less risky than EirGenix. It trades about 0.25 of its potential returns per unit of risk. EirGenix is currently generating about 0.19 per unit of risk. If you would invest 4,540 in Gloria Material Technology on October 24, 2024 and sell it today you would earn a total of 295.00 from holding Gloria Material Technology or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gloria Material Technology vs. EirGenix
Performance |
| Timeline |
| Gloria Material Tech |
| EirGenix |
Gloria Material and EirGenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gloria Material and EirGenix
The main advantage of trading using opposite Gloria Material and EirGenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gloria Material position performs unexpectedly, EirGenix 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 EirGenix will offset losses from the drop in EirGenix's long position.| Gloria Material vs. Synmosa Biopharma | Gloria Material vs. Taiwan Glass Ind | Gloria Material vs. Tong Tai Machine Tool | Gloria Material vs. Oriental Union Chemical |
| EirGenix vs. Mospec Semiconductor Corp | EirGenix vs. Baotek Industrial Materials | EirGenix vs. Sinopower Semiconductor | EirGenix vs. Cheng Mei Materials |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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