Correlation Between Blue Star and Greenbrook TMS

Can any of the company-specific risk be diversified away by investing in both Blue Star and Greenbrook TMS 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 Blue Star and Greenbrook TMS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blue Star Foods and Greenbrook TMS, you can compare the effects of market volatilities on Blue Star and Greenbrook TMS 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 Blue Star with a short position of Greenbrook TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Star and Greenbrook TMS.

Diversification Opportunities for Blue Star and Greenbrook TMS

0.29

Correlation Coefficient

Blue Star  Greenbrook TMS

Modest diversification

The 3 months correlation between Blue and Greenbrook is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Blue Star Foods and Greenbrook TMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenbrook TMS and Blue Star 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 Blue Star Foods are associated (or correlated) with Greenbrook TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenbrook TMS has no effect on the direction of Blue Star i.e., Blue Star and Greenbrook TMS go up and down completely randomly.

Pair Corralation between Blue Star and Greenbrook TMS

If you would invest  34.00  in Greenbrook TMS on September 23, 2024 and sell it today you would earn a total of  0.00  from holding Greenbrook TMS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Blue Star Foods  vs.  Greenbrook TMS

Blue Star Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blue Star Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Greenbrook TMS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Blue Star and Greenbrook TMS

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

The idea behind Blue Star Foods and Greenbrook TMS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.