Correlation Between Glassbox and Rimoni
Can any of the company-specific risk be diversified away by investing in both Glassbox and Rimoni 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 Rimoni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glassbox and Rimoni, you can compare the effects of market volatilities on Glassbox and Rimoni 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 Rimoni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glassbox and Rimoni.
Diversification Opportunities for Glassbox and Rimoni
Significant diversification
The 3 months correlation between Glassbox and Rimoni is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Glassbox and Rimoni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimoni 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 Rimoni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimoni has no effect on the direction of Glassbox i.e., Glassbox and Rimoni go up and down completely randomly.
Pair Corralation between Glassbox and Rimoni
If you would invest 460,000 in Rimoni on September 1, 2024 and sell it today you would earn a total of 42,000 from holding Rimoni or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 16.67% |
| Values | Daily Returns |
Glassbox vs. Rimoni
Performance |
| Timeline |
| Glassbox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Rimoni |
Glassbox and Rimoni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glassbox and Rimoni
The main advantage of trading using opposite Glassbox and Rimoni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glassbox position performs unexpectedly, Rimoni 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 Rimoni will offset losses from the drop in Rimoni's long position.| Glassbox vs. Bio Meat Foodtech | Glassbox vs. Scope Metals Group | Glassbox vs. Alrov Properties Lodgings | Glassbox vs. Israel China Biotechnology |
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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