Correlation Between Green Cross and Gs Retail

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

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

Diversification Opportunities for Green Cross and Gs Retail

-0.49

Correlation Coefficient

Green Cross  Gs Retail

Very good diversification

The 3 months correlation between Green and 007070 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Green Cross Medical and Gs Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gs Retail and Green Cross 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 Green Cross Medical are associated (or correlated) with Gs Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gs Retail has no effect on the direction of Green Cross i.e., Green Cross and Gs Retail go up and down completely randomly.

Pair Corralation between Green Cross and Gs Retail

Assuming the 90 days trading horizon Green Cross Medical is expected to under-perform the Gs Retail. In addition to that, Green Cross is 1.82 times more volatile than Gs Retail. It trades about -0.01 of its total potential returns per unit of risk. Gs Retail is currently generating about -0.01 per unit of volatility. If you would invest  2,790,149  in Gs Retail on September 19, 2024 and sell it today you would lose (475,149) from holding Gs Retail or give up 17.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Green Cross Medical  vs.  Gs Retail

Green Cross Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Green Cross Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Gs Retail

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gs Retail are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Gs Retail is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Green Cross and Gs Retail

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

The idea behind Green Cross Medical and Gs Retail 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.