Correlation Between Glori Energy and TransAKT
Can any of the company-specific risk be diversified away by investing in both Glori Energy and TransAKT 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 TransAKT 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 TransAKT, you can compare the effects of market volatilities on Glori Energy and TransAKT 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 TransAKT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glori Energy and TransAKT.
Diversification Opportunities for Glori Energy and TransAKT
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glori and TransAKT is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Glori Energy Technology and TransAKT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TransAKT 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 TransAKT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TransAKT has no effect on the direction of Glori Energy i.e., Glori Energy and TransAKT go up and down completely randomly.
Pair Corralation between Glori Energy and TransAKT
If you would invest 0.22 in TransAKT on August 29, 2024 and sell it today you would earn a total of 2.55 from holding TransAKT or generate 1159.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Glori Energy Technology vs. TransAKT
Performance |
| Timeline |
| Glori Energy Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TransAKT |
Glori Energy and TransAKT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glori Energy and TransAKT
The main advantage of trading using opposite Glori Energy and TransAKT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glori Energy position performs unexpectedly, TransAKT 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 TransAKT will offset losses from the drop in TransAKT'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 |
| TransAKT vs. Deere Company | TransAKT vs. Columbus McKinnon | TransAKT vs. Hyster Yale Materials Handling | TransAKT vs. Manitowoc |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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