Correlation Between Glory Star and INEO Tech
Can any of the company-specific risk be diversified away by investing in both Glory Star and INEO Tech 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 Glory Star and INEO Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glory Star New and INEO Tech Corp, you can compare the effects of market volatilities on Glory Star and INEO Tech 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 Glory Star with a short position of INEO Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glory Star and INEO Tech.
Diversification Opportunities for Glory Star and INEO Tech
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glory and INEO is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New and INEO Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INEO Tech Corp and Glory Star 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 Glory Star New are associated (or correlated) with INEO Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INEO Tech Corp has no effect on the direction of Glory Star i.e., Glory Star and INEO Tech go up and down completely randomly.
Pair Corralation between Glory Star and INEO Tech
If you would invest 5.96 in INEO Tech Corp on September 1, 2024 and sell it today you would lose (3.16) from holding INEO Tech Corp or give up 53.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Glory Star New vs. INEO Tech Corp
Performance |
| Timeline |
| Glory Star New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| INEO Tech Corp |
Glory Star and INEO Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glory Star and INEO Tech
The main advantage of trading using opposite Glory Star and INEO Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glory Star position performs unexpectedly, INEO Tech 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 INEO Tech will offset losses from the drop in INEO Tech's long position.| Glory Star vs. Global Payout | Glory Star vs. Clubhouse Media Group | Glory Star vs. ZW Data Action | Glory Star vs. MGO Global Common |
| INEO Tech vs. Beyond Commerce | INEO Tech vs. Baosheng Media Group | INEO Tech vs. MGO Global Common | INEO Tech vs. CMG Holdings Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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