Correlation Between CKX Lands and Glori Energy

Can any of the company-specific risk be diversified away by investing in both CKX Lands and Glori Energy 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 CKX Lands and Glori Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CKX Lands and Glori Energy Technology, you can compare the effects of market volatilities on CKX Lands and Glori Energy 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 CKX Lands with a short position of Glori Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CKX Lands and Glori Energy.

Diversification Opportunities for CKX Lands and Glori Energy

0.0

Correlation Coefficient

CKX Lands  Glori Energy

Pay attention - limited upside

The 3 months correlation between CKX and Glori is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CKX Lands and Glori Energy Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glori Energy Technology and CKX Lands 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 CKX Lands are associated (or correlated) with Glori Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glori Energy Technology has no effect on the direction of CKX Lands i.e., CKX Lands and Glori Energy go up and down completely randomly.

Pair Corralation between CKX Lands and Glori Energy

If you would invest (100.00) in Glori Energy Technology on December 26, 2024 and sell it today you would earn a total of  100.00  from holding Glori Energy Technology or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CKX Lands  vs.  Glori Energy Technology

CKX Lands

Risk-Adjusted Performance

Very Weak

Over the last 90 days CKX Lands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Glori Energy Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Glori Energy Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Glori Energy is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with CKX Lands and Glori Energy

The main advantage of trading using opposite CKX Lands and Glori Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CKX Lands position performs unexpectedly, Glori Energy 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 Glori Energy will offset losses from the drop in Glori Energy's long position.

The idea behind CKX Lands and Glori Energy Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .