Correlation Between Greenbrook TMS and Scisparc

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

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

Diversification Opportunities for Greenbrook TMS and Scisparc

0.17

Correlation Coefficient

Greenbrook TMS  Scisparc

Average diversification

The 3 months correlation between Greenbrook and Scisparc is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Greenbrook TMS and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc and Greenbrook TMS 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 Greenbrook TMS are associated (or correlated) with Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of Greenbrook TMS i.e., Greenbrook TMS and Scisparc go up and down completely randomly.

Pair Corralation between Greenbrook TMS and Scisparc

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	Insignificant
Accuracy	0.79%
Values	Daily Returns

Greenbrook TMS  vs.  Scisparc

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.

Scisparc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scisparc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Greenbrook TMS and Scisparc

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

The idea behind Greenbrook TMS and Scisparc 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.