Correlation Between Gloria Material and Thunder Tiger
Can any of the company-specific risk be diversified away by investing in both Gloria Material and Thunder Tiger 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 Thunder Tiger 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 Thunder Tiger Corp, you can compare the effects of market volatilities on Gloria Material and Thunder Tiger 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 Thunder Tiger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gloria Material and Thunder Tiger.
Diversification Opportunities for Gloria Material and Thunder Tiger
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gloria and Thunder is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gloria Material Technology and Thunder Tiger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Tiger Corp 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 Thunder Tiger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Tiger Corp has no effect on the direction of Gloria Material i.e., Gloria Material and Thunder Tiger go up and down completely randomly.
Pair Corralation between Gloria Material and Thunder Tiger
Assuming the 90 days trading horizon Gloria Material is expected to generate 1.45 times less return on investment than Thunder Tiger. But when comparing it to its historical volatility, Gloria Material Technology is 1.59 times less risky than Thunder Tiger. It trades about 0.07 of its potential returns per unit of risk. Thunder Tiger Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,620 in Thunder Tiger Corp on August 30, 2024 and sell it today you would earn a total of 150.00 from holding Thunder Tiger Corp or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gloria Material Technology vs. Thunder Tiger Corp
Performance |
| Timeline |
| Gloria Material Tech |
| Thunder Tiger Corp |
Gloria Material and Thunder Tiger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gloria Material and Thunder Tiger
The main advantage of trading using opposite Gloria Material and Thunder Tiger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gloria Material position performs unexpectedly, Thunder Tiger 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 Thunder Tiger will offset losses from the drop in Thunder Tiger's long position.| Gloria Material vs. China Steel Corp | Gloria Material vs. China Steel Corp | Gloria Material vs. Chung Hung Steel | Gloria Material vs. Tung Ho Steel |
| Thunder Tiger vs. Yulon Finance Corp | Thunder Tiger vs. Taiwan Secom Co | Thunder Tiger vs. Great Wall Enterprise |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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