Correlation Between Glori Energy and Embrace Change
Can any of the company-specific risk be diversified away by investing in both Glori Energy and Embrace Change 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 Embrace Change 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 Embrace Change Acquisition, you can compare the effects of market volatilities on Glori Energy and Embrace Change 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 Embrace Change. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glori Energy and Embrace Change.
Diversification Opportunities for Glori Energy and Embrace Change
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glori and Embrace is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Glori Energy Technology and Embrace Change Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embrace Change Acqui 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 Embrace Change. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embrace Change Acqui has no effect on the direction of Glori Energy i.e., Glori Energy and Embrace Change go up and down completely randomly.
Pair Corralation between Glori Energy and Embrace Change
Given the investment horizon of 90 days Glori Energy Technology is expected to generate 895.03 times more return on investment than Embrace Change. However, Glori Energy is 895.03 times more volatile than Embrace Change Acquisition. It trades about 0.14 of its potential returns per unit of risk. Embrace Change Acquisition is currently generating about 0.17 per unit of risk. If you would invest 0.01 in Glori Energy Technology on August 26, 2024 and sell it today you would earn a total of 0.59 from holding Glori Energy Technology or generate 5900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 9.26% |
| Values | Daily Returns |
Glori Energy Technology vs. Embrace Change Acquisition
Performance |
| Timeline |
| Glori Energy Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Embrace Change Acqui |
Glori Energy and Embrace Change Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glori Energy and Embrace Change
The main advantage of trading using opposite Glori Energy and Embrace Change positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glori Energy position performs unexpectedly, Embrace Change 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 Embrace Change will offset losses from the drop in Embrace Change'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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