Correlation Between All American and Greengro Tech

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

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

Diversification Opportunities for All American and Greengro Tech

0.0

Correlation Coefficient

All American  Greengro Tech

Pay attention - limited upside

The 3 months correlation between All and Greengro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding All American Gld and Greengro Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greengro Tech and All American 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 All American Gld are associated (or correlated) with Greengro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greengro Tech has no effect on the direction of All American i.e., All American and Greengro Tech go up and down completely randomly.

Pair Corralation between All American and Greengro Tech

If you would invest  0.00  in Greengro Tech on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Greengro Tech or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

All American Gld  vs.  Greengro Tech

All American Gld

Risk-Adjusted Performance

Very Weak

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

Greengro Tech

Risk-Adjusted Performance

Very Weak

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

Pair Trading with All American and Greengro Tech

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

The idea behind All American Gld and Greengro Tech 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.