Correlation Between Glassbridge Enterprises and Ellsworth Growth

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

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

Diversification Opportunities for Glassbridge Enterprises and Ellsworth Growth

-0.81

Correlation Coefficient

Glassbridge Enterprises  Ellsworth Growth

Pay attention - limited upside

The 3 months correlation between Glassbridge and Ellsworth is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Glassbridge Enterprises and Ellsworth Growth and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellsworth Growth and Glassbridge Enterprises 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 Glassbridge Enterprises are associated (or correlated) with Ellsworth Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellsworth Growth has no effect on the direction of Glassbridge Enterprises i.e., Glassbridge Enterprises and Ellsworth Growth go up and down completely randomly.

Pair Corralation between Glassbridge Enterprises and Ellsworth Growth

If you would invest  2,162  in Ellsworth Growth and on July 14, 2024 and sell it today you would earn a total of  237.00  from holding Ellsworth Growth and or generate 10.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	0.79%
Values	Daily Returns

Glassbridge Enterprises  vs.  Ellsworth Growth and

Glassbridge Enterprises

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glassbridge Enterprises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Glassbridge Enterprises is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Ellsworth Growth

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ellsworth Growth and are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Ellsworth Growth may actually be approaching a critical reversion point that can send shares even higher in November 2024.

Pair Trading with Glassbridge Enterprises and Ellsworth Growth

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

The idea behind Glassbridge Enterprises and Ellsworth Growth and 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.