Correlation Between Glassbox and Photomyne
Can any of the company-specific risk be diversified away by investing in both Glassbox and Photomyne 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 Glassbox and Photomyne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glassbox and Photomyne, you can compare the effects of market volatilities on Glassbox and Photomyne 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 Glassbox with a short position of Photomyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glassbox and Photomyne.
Diversification Opportunities for Glassbox and Photomyne
Very good diversification
The 3 months correlation between Glassbox and Photomyne is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Glassbox and Photomyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photomyne and Glassbox 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 Glassbox are associated (or correlated) with Photomyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photomyne has no effect on the direction of Glassbox i.e., Glassbox and Photomyne go up and down completely randomly.
Pair Corralation between Glassbox and Photomyne
Assuming the 90 days trading horizon Glassbox is expected to generate 1.56 times more return on investment than Photomyne. However, Glassbox is 1.56 times more volatile than Photomyne. It trades about 0.07 of its potential returns per unit of risk. Photomyne is currently generating about 0.07 per unit of risk. If you would invest 229,200 in Glassbox on August 31, 2024 and sell it today you would earn a total of 176,700 from holding Glassbox or generate 77.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.19% |
| Values | Daily Returns |
Glassbox vs. Photomyne
Performance |
| Timeline |
| Glassbox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Photomyne |
Glassbox and Photomyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glassbox and Photomyne
The main advantage of trading using opposite Glassbox and Photomyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glassbox position performs unexpectedly, Photomyne 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 Photomyne will offset losses from the drop in Photomyne's long position.| Glassbox vs. Clal Insurance Enterprises | Glassbox vs. Batm Advanced Communications | Glassbox vs. Petrochemical | Glassbox vs. Bank Leumi Le Israel |
| Photomyne vs. Sure Tech Investments LP | Photomyne vs. Elbit Medical Technologies | Photomyne vs. Azorim Investment Development | Photomyne vs. Adgar Investments and |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets |