Correlation Between Glori Energy and Absolute Health
Can any of the company-specific risk be diversified away by investing in both Glori Energy and Absolute Health 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 Glori Energy and Absolute Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glori Energy Technology and Absolute Health and, you can compare the effects of market volatilities on Glori Energy and Absolute Health 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 Glori Energy with a short position of Absolute Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glori Energy and Absolute Health.
Diversification Opportunities for Glori Energy and Absolute Health
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glori and Absolute is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Glori Energy Technology and Absolute Health and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Health and Glori Energy 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 Glori Energy Technology are associated (or correlated) with Absolute Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Health has no effect on the direction of Glori Energy i.e., Glori Energy and Absolute Health go up and down completely randomly.
Pair Corralation between Glori Energy and Absolute Health
If you would invest 0.23 in Absolute Health and on November 2, 2024 and sell it today you would lose (0.13) from holding Absolute Health and or give up 56.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.2% |
| Values | Daily Returns |
Glori Energy Technology vs. Absolute Health and
Performance |
| Timeline |
| Glori Energy Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Absolute Health |
Glori Energy and Absolute Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glori Energy and Absolute Health
The main advantage of trading using opposite Glori Energy and Absolute Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glori Energy position performs unexpectedly, Absolute Health 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 Absolute Health will offset losses from the drop in Absolute Health's long position.| Glori Energy vs. China Health Management | Glori Energy vs. Absolute Health and | Glori Energy vs. Embrace Change Acquisition | Glori Energy vs. Supurva Healthcare Group |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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