Correlation Between Glori Energy and CTR Investments
Can any of the company-specific risk be diversified away by investing in both Glori Energy and CTR Investments 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 CTR Investments 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 CTR Investments Consulting, you can compare the effects of market volatilities on Glori Energy and CTR Investments 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 CTR Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glori Energy and CTR Investments.
Diversification Opportunities for Glori Energy and CTR Investments
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glori and CTR is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Glori Energy Technology and CTR Investments Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTR Investments Cons 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 CTR Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTR Investments Cons has no effect on the direction of Glori Energy i.e., Glori Energy and CTR Investments go up and down completely randomly.
Pair Corralation between Glori Energy and CTR Investments
If you would invest 0.04 in CTR Investments Consulting on October 26, 2024 and sell it today you would lose (0.01) from holding CTR Investments Consulting or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Glori Energy Technology vs. CTR Investments Consulting
Performance |
| Timeline |
| Glori Energy Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CTR Investments Cons |
Glori Energy and CTR Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glori Energy and CTR Investments
The main advantage of trading using opposite Glori Energy and CTR Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glori Energy position performs unexpectedly, CTR Investments 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 CTR Investments will offset losses from the drop in CTR Investments' 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 |
| CTR Investments vs. American Leisure Holdings | CTR Investments vs. Absolute Health and | CTR Investments vs. Supurva Healthcare Group | CTR Investments vs. China Health Management |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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