Correlation Between Soulbrain Holdings and Green Cross
Can any of the company-specific risk be diversified away by investing in both Soulbrain Holdings and Green Cross 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 Soulbrain Holdings and Green Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soulbrain Holdings Co and Green Cross Medical, you can compare the effects of market volatilities on Soulbrain Holdings and Green Cross 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 Soulbrain Holdings with a short position of Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soulbrain Holdings and Green Cross.
Diversification Opportunities for Soulbrain Holdings and Green Cross
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Soulbrain and Green is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Soulbrain Holdings Co and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross Medical and Soulbrain Holdings 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 Soulbrain Holdings Co are associated (or correlated) with Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of Soulbrain Holdings i.e., Soulbrain Holdings and Green Cross go up and down completely randomly.
Pair Corralation between Soulbrain Holdings and Green Cross
Assuming the 90 days trading horizon Soulbrain Holdings Co is expected to generate 1.33 times more return on investment than Green Cross. However, Soulbrain Holdings is 1.33 times more volatile than Green Cross Medical. It trades about 0.04 of its potential returns per unit of risk. Green Cross Medical is currently generating about -0.07 per unit of risk. If you would invest 4,010,000 in Soulbrain Holdings Co on September 24, 2024 and sell it today you would earn a total of 90,000 from holding Soulbrain Holdings Co or generate 2.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Soulbrain Holdings Co vs. Green Cross Medical
Performance |
Timeline |
Soulbrain Holdings |
Green Cross Medical |
Soulbrain Holdings and Green Cross Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Soulbrain Holdings and Green Cross
The main advantage of trading using opposite Soulbrain Holdings and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soulbrain Holdings position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.Soulbrain Holdings vs. LG Chemicals | Soulbrain Holdings vs. POSCO Holdings | Soulbrain Holdings vs. Hanwha Solutions | Soulbrain Holdings vs. Lotte Chemical Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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