Correlation Between Sarine Technologies and Glassbox

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

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

Diversification Opportunities for Sarine Technologies and Glassbox

-0.23

Correlation Coefficient

Sarine Technologies  Glassbox

Very good diversification

The 3 months correlation between Sarine and Glassbox is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sarine Technologies and Glassbox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glassbox and Sarine Technologies 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 Sarine Technologies are associated (or correlated) with Glassbox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glassbox has no effect on the direction of Sarine Technologies i.e., Sarine Technologies and Glassbox go up and down completely randomly.

Pair Corralation between Sarine Technologies and Glassbox

If you would invest (100.00) in Glassbox on September 4, 2024 and sell it today you would earn a total of  100.00  from holding Glassbox or generate -100.0% return on investment over 90 days.

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

Sarine Technologies  vs.  Glassbox

Sarine Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sarine Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sarine Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Glassbox

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glassbox has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Glassbox is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sarine Technologies and Glassbox

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

The idea behind Sarine Technologies and Glassbox 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.