Correlation Between Glen Eagle and Dana Resources
Can any of the company-specific risk be diversified away by investing in both Glen Eagle and Dana Resources 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 Dana Resources 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 Dana Resources, you can compare the effects of market volatilities on Glen Eagle and Dana Resources 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 Dana Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Eagle and Dana Resources.
Diversification Opportunities for Glen Eagle and Dana Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glen and Dana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Glen Eagle Resources and Dana Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Resources 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 Dana Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Resources has no effect on the direction of Glen Eagle i.e., Glen Eagle and Dana Resources go up and down completely randomly.
Pair Corralation between Glen Eagle and Dana Resources
Assuming the 90 days horizon Glen Eagle Resources is expected to generate 1.73 times more return on investment than Dana Resources. However, Glen Eagle is 1.73 times more volatile than Dana Resources. It trades about -0.01 of its potential returns per unit of risk. Dana Resources is currently generating about -0.04 per unit of risk. If you would invest 1.00 in Glen Eagle Resources on August 29, 2024 and sell it today you would lose (0.88) from holding Glen Eagle Resources or give up 88.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glen Eagle Resources vs. Dana Resources
Performance |
| Timeline |
| Glen Eagle Resources |
| Dana Resources |
Glen Eagle and Dana Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Eagle and Dana Resources
The main advantage of trading using opposite Glen Eagle and Dana Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Eagle position performs unexpectedly, Dana Resources 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 Dana Resources will offset losses from the drop in Dana Resources' 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 |
| Dana Resources vs. Peak Resources Limited | Dana Resources vs. Glen Eagle Resources | Dana Resources vs. Metals Creek Resources | Dana Resources vs. Regulus Resources |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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