Correlation Between Bannix Acquisition and Glori Energy
Can any of the company-specific risk be diversified away by investing in both Bannix Acquisition 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 Bannix Acquisition and Glori Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bannix Acquisition Corp and Glori Energy Technology, you can compare the effects of market volatilities on Bannix Acquisition 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 Bannix Acquisition with a short position of Glori Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bannix Acquisition and Glori Energy.
Diversification Opportunities for Bannix Acquisition and Glori Energy
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bannix and Glori is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bannix Acquisition Corp 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 Bannix Acquisition 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 Bannix Acquisition Corp 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 Bannix Acquisition i.e., Bannix Acquisition and Glori Energy go up and down completely randomly.
Pair Corralation between Bannix Acquisition and Glori Energy
Assuming the 90 days horizon Bannix Acquisition is expected to generate 1.2 times less return on investment than Glori Energy. But when comparing it to its historical volatility, Bannix Acquisition Corp is 1.16 times less risky than Glori Energy. It trades about 0.14 of its potential returns per unit of risk. Glori Energy Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Glori Energy Technology on August 26, 2024 and sell it today you would earn a total of 0.59 from holding Glori Energy Technology or generate 5900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 17.83% |
| Values | Daily Returns |
Bannix Acquisition Corp vs. Glori Energy Technology
Performance |
| Timeline |
| Bannix Acquisition Corp |
| Glori Energy Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bannix Acquisition and Glori Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bannix Acquisition and Glori Energy
The main advantage of trading using opposite Bannix Acquisition and Glori Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bannix Acquisition 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.| Bannix Acquisition vs. Bright Scholar Education | Bannix Acquisition vs. Universal Technical Institute | Bannix Acquisition vs. Relx PLC ADR | Bannix Acquisition vs. AMREP |
| Glori Energy vs. China Health Management | Glori Energy vs. Absolute Health and | Glori Energy vs. Embrace Change Acquisition | Glori Energy vs. Supurva Healthcare Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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