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

0.0

Correlation Coefficient

Glory Star  INEO Tech

Pay attention - limited upside

The 3 months correlation between Glory and INEO is 0.0. 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  50.00  in Glory Star New on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Glory Star New or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Glory Star New  vs.  INEO Tech Corp

Glory Star New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glory Star New has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Glory Star is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

INEO Tech Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INEO Tech Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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.

The idea behind Glory Star New and INEO Tech Corp 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.