Correlation Between Glori Energy and Atlantic Energy

Can any of the company-specific risk be diversified away by investing in both Glori Energy and Atlantic 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 Glori Energy and Atlantic Energy 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 Atlantic Energy Solutions, you can compare the effects of market volatilities on Glori Energy and Atlantic 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 Glori Energy with a short position of Atlantic Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glori Energy and Atlantic Energy.

Diversification Opportunities for Glori Energy and Atlantic Energy

0.07

Correlation Coefficient

Glori Energy  Atlantic Energy

Significant diversification

The 3 months correlation between Glori and Atlantic is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Glori Energy Technology and Atlantic Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Energy Solutions 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 Atlantic Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Energy Solutions has no effect on the direction of Glori Energy i.e., Glori Energy and Atlantic Energy go up and down completely randomly.

Pair Corralation between Glori Energy and Atlantic Energy

If you would invest  0.60  in Glori Energy Technology on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Glori Energy Technology or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	2.33%
Values	Daily Returns

Glori Energy Technology  vs.  Atlantic Energy Solutions

Glori Energy Technology

Risk-Adjusted Performance

0 of 100

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.

Atlantic Energy Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atlantic Energy Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Atlantic Energy is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Glori Energy and Atlantic Energy

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

The idea behind Glori Energy Technology and Atlantic Energy Solutions 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.

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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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.