Correlation Between Glen Eagle and CAT Strategic
Can any of the company-specific risk be diversified away by investing in both Glen Eagle and CAT Strategic 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 Glen Eagle and CAT Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glen Eagle Resources and CAT Strategic Metals, you can compare the effects of market volatilities on Glen Eagle and CAT Strategic 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 Glen Eagle with a short position of CAT Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Eagle and CAT Strategic.
Diversification Opportunities for Glen Eagle and CAT Strategic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glen and CAT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Glen Eagle Resources and CAT Strategic Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAT Strategic Metals and Glen Eagle 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 Glen Eagle Resources are associated (or correlated) with CAT Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAT Strategic Metals has no effect on the direction of Glen Eagle i.e., Glen Eagle and CAT Strategic go up and down completely randomly.
Pair Corralation between Glen Eagle and CAT Strategic
If you would invest 0.14 in CAT Strategic Metals on August 25, 2024 and sell it today you would earn a total of 0.26 from holding CAT Strategic Metals or generate 185.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glen Eagle Resources vs. CAT Strategic Metals
Performance |
| Timeline |
| Glen Eagle Resources |
| CAT Strategic Metals |
Glen Eagle and CAT Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Eagle and CAT Strategic
The main advantage of trading using opposite Glen Eagle and CAT Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Eagle position performs unexpectedly, CAT Strategic 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 CAT Strategic will offset losses from the drop in CAT Strategic's long position.| Glen Eagle vs. CAT Strategic Metals | Glen Eagle vs. Grizzly Discoveries | Glen Eagle vs. Silver Dollar Resources | Glen Eagle vs. Defense Metals Corp |
| CAT Strategic vs. Glen Eagle Resources | CAT Strategic vs. Grizzly Discoveries | CAT Strategic vs. Silver Dollar Resources | CAT Strategic vs. Defense Metals Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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