Correlation Between American Leisure and Glori Energy
Can any of the company-specific risk be diversified away by investing in both American Leisure and Glori Energy 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 American Leisure and Glori Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Leisure Holdings and Glori Energy Technology, you can compare the effects of market volatilities on American Leisure and Glori Energy 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 American Leisure with a short position of Glori Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Leisure and Glori Energy.
Diversification Opportunities for American Leisure and Glori Energy
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Glori is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding American Leisure Holdings and Glori Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glori Energy Technology and American Leisure 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 American Leisure Holdings are associated (or correlated) with Glori Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glori Energy Technology has no effect on the direction of American Leisure i.e., American Leisure and Glori Energy go up and down completely randomly.
Pair Corralation between American Leisure and Glori Energy
If you would invest 0.60 in Glori Energy Technology on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Glori Energy Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
American Leisure Holdings vs. Glori Energy Technology
Performance |
| Timeline |
| American Leisure Holdings |
| Glori Energy Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Leisure and Glori Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Leisure and Glori Energy
The main advantage of trading using opposite American Leisure and Glori Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Leisure position performs unexpectedly, Glori Energy 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 Glori Energy will offset losses from the drop in Glori Energy's long position.| American Leisure vs. Absolute Health and | American Leisure vs. Supurva Healthcare Group | American Leisure vs. China Health Management | American Leisure vs. Embrace Change Acquisition |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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