Correlation Between Aeries Technology and GreenPro Capital

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

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

Diversification Opportunities for Aeries Technology and GreenPro Capital

-0.6

Correlation Coefficient

Aeries Technology  GreenPro Capital

Excellent diversification

The 3 months correlation between Aeries and GreenPro is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aeries Technology and GreenPro Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPro Capital Corp and Aeries Technology 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 Aeries Technology are associated (or correlated) with GreenPro Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPro Capital Corp has no effect on the direction of Aeries Technology i.e., Aeries Technology and GreenPro Capital go up and down completely randomly.

Pair Corralation between Aeries Technology and GreenPro Capital

Given the investment horizon of 90 days Aeries Technology is expected to under-perform the GreenPro Capital. In addition to that, Aeries Technology is 1.05 times more volatile than GreenPro Capital Corp. It trades about -0.04 of its total potential returns per unit of risk. GreenPro Capital Corp is currently generating about 0.01 per unit of volatility. If you would invest  167.00  in GreenPro Capital Corp on October 4, 2024 and sell it today you would lose (56.00) from holding GreenPro Capital Corp or give up 33.53% of portfolio value over 90 days.

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

Aeries Technology  vs.  GreenPro Capital Corp

Aeries Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aeries Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

GreenPro Capital Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GreenPro Capital Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, GreenPro Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aeries Technology and GreenPro Capital

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

The idea behind Aeries Technology and GreenPro Capital Corp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.