Correlation Between Glen Burnie and Contango ORE
Can any of the company-specific risk be diversified away by investing in both Glen Burnie and Contango ORE 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 Burnie and Contango ORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glen Burnie Bancorp and Contango ORE, you can compare the effects of market volatilities on Glen Burnie and Contango ORE 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 Burnie with a short position of Contango ORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Burnie and Contango ORE.
Diversification Opportunities for Glen Burnie and Contango ORE
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Glen and Contango is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Glen Burnie Bancorp and Contango ORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contango ORE and Glen Burnie 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 Burnie Bancorp are associated (or correlated) with Contango ORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contango ORE has no effect on the direction of Glen Burnie i.e., Glen Burnie and Contango ORE go up and down completely randomly.
Pair Corralation between Glen Burnie and Contango ORE
Given the investment horizon of 90 days Glen Burnie Bancorp is expected to generate 1.48 times more return on investment than Contango ORE. However, Glen Burnie is 1.48 times more volatile than Contango ORE. It trades about 0.07 of its potential returns per unit of risk. Contango ORE is currently generating about -0.3 per unit of risk. If you would invest 536.00 in Glen Burnie Bancorp on August 25, 2024 and sell it today you would earn a total of 24.00 from holding Glen Burnie Bancorp or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Glen Burnie Bancorp vs. Contango ORE
Performance |
| Timeline |
| Glen Burnie Bancorp |
| Contango ORE |
Glen Burnie and Contango ORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Burnie and Contango ORE
The main advantage of trading using opposite Glen Burnie and Contango ORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Burnie position performs unexpectedly, Contango ORE 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 Contango ORE will offset losses from the drop in Contango ORE's long position.| Glen Burnie vs. First Bankers Trustshares | Glen Burnie vs. Greenville Federal Financial | Glen Burnie vs. First Ottawa Bancshares | Glen Burnie vs. Coastal Carolina Bancshares |
| Contango ORE vs. Monarch Mining | Contango ORE vs. First Guaranty Bancshares | Contango ORE vs. Glen Burnie Bancorp | Contango ORE vs. Princeton Capital |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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