Correlation Between Glori Energy and TenX Keane
Can any of the company-specific risk be diversified away by investing in both Glori Energy and TenX Keane 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 TenX Keane 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 TenX Keane Acquisition, you can compare the effects of market volatilities on Glori Energy and TenX Keane 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 TenX Keane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glori Energy and TenX Keane.
Diversification Opportunities for Glori Energy and TenX Keane
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glori and TenX is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Glori Energy Technology and TenX Keane Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TenX Keane Acquisition 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 TenX Keane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TenX Keane Acquisition has no effect on the direction of Glori Energy i.e., Glori Energy and TenX Keane go up and down completely randomly.
Pair Corralation between Glori Energy and TenX Keane
Given the investment horizon of 90 days Glori Energy Technology is expected to generate 14.15 times more return on investment than TenX Keane. However, Glori Energy is 14.15 times more volatile than TenX Keane Acquisition. It trades about 0.14 of its potential returns per unit of risk. TenX Keane Acquisition is currently generating about 0.03 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 | Significant |
| Accuracy | 10.9% |
| Values | Daily Returns |
Glori Energy Technology vs. TenX Keane Acquisition
Performance |
| Timeline |
| Glori Energy Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TenX Keane Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Glori Energy and TenX Keane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glori Energy and TenX Keane
The main advantage of trading using opposite Glori Energy and TenX Keane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glori Energy position performs unexpectedly, TenX Keane 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 TenX Keane will offset losses from the drop in TenX Keane'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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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