Correlation Between Tesla and Glacier Lake
Can any of the company-specific risk be diversified away by investing in both Tesla and Glacier Lake 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 Tesla and Glacier Lake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tesla Inc CDR and Glacier Lake Resources, you can compare the effects of market volatilities on Tesla and Glacier Lake 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 Tesla with a short position of Glacier Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tesla and Glacier Lake.
Diversification Opportunities for Tesla and Glacier Lake
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tesla and Glacier is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tesla Inc CDR and Glacier Lake Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Lake Resources and Tesla 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 Tesla Inc CDR are associated (or correlated) with Glacier Lake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glacier Lake Resources has no effect on the direction of Tesla i.e., Tesla and Glacier Lake go up and down completely randomly.
Pair Corralation between Tesla and Glacier Lake
Assuming the 90 days trading horizon Tesla Inc CDR is expected to generate 0.53 times more return on investment than Glacier Lake. However, Tesla Inc CDR is 1.9 times less risky than Glacier Lake. It trades about 0.09 of its potential returns per unit of risk. Glacier Lake Resources is currently generating about 0.03 per unit of risk. If you would invest 1,751 in Tesla Inc CDR on November 4, 2024 and sell it today you would earn a total of 1,923 from holding Tesla Inc CDR or generate 109.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tesla Inc CDR vs. Glacier Lake Resources
Performance |
| Timeline |
| Tesla Inc CDR |
| Glacier Lake Resources |
Tesla and Glacier Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tesla and Glacier Lake
The main advantage of trading using opposite Tesla and Glacier Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tesla position performs unexpectedly, Glacier Lake 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 Glacier Lake will offset losses from the drop in Glacier Lake's long position.| Tesla vs. Queens Road Capital | Tesla vs. CVW CleanTech | Tesla vs. Air Canada | Tesla vs. BluMetric Environmental |
| Glacier Lake vs. Black Mammoth Metals | Glacier Lake vs. T2 Metals Corp | Glacier Lake vs. Primaris Retail RE | Glacier Lake vs. Globex Mining Enterprises |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |