Correlation Between Booz Allen and GreenPro Capital
Can any of the company-specific risk be diversified away by investing in both Booz Allen 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 Booz Allen and GreenPro Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Booz Allen Hamilton and GreenPro Capital Corp, you can compare the effects of market volatilities on Booz Allen 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 Booz Allen with a short position of GreenPro Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Booz Allen and GreenPro Capital.
Diversification Opportunities for Booz Allen and GreenPro Capital
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Booz and GreenPro is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Booz Allen Hamilton 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 Booz Allen 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 Booz Allen Hamilton 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 Booz Allen i.e., Booz Allen and GreenPro Capital go up and down completely randomly.
Pair Corralation between Booz Allen and GreenPro Capital
Considering the 90-day investment horizon Booz Allen Hamilton is expected to generate 1.0 times more return on investment than GreenPro Capital. However, Booz Allen is 1.0 times more volatile than GreenPro Capital Corp. It trades about -0.19 of its potential returns per unit of risk. GreenPro Capital Corp is currently generating about -0.2 per unit of risk. If you would invest 12,750 in Booz Allen Hamilton on December 10, 2024 and sell it today you would lose (1,486) from holding Booz Allen Hamilton or give up 11.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Booz Allen Hamilton vs. GreenPro Capital Corp
Performance |
Timeline |
Booz Allen Hamilton |
GreenPro Capital Corp |
Booz Allen and GreenPro Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Booz Allen and GreenPro Capital
The main advantage of trading using opposite Booz Allen and GreenPro Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Booz Allen 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.Booz Allen vs. Huron Consulting Group | Booz Allen vs. CRA International | Booz Allen vs. Forrester Research | Booz Allen vs. Exponent |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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