Correlation Between Greenshift Corp and Rosinbomb

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

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

Diversification Opportunities for Greenshift Corp and Rosinbomb

0.14

Correlation Coefficient

Greenshift Corp  Rosinbomb

Average diversification

The 3 months correlation between Greenshift and Rosinbomb is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Greenshift Corp and Rosinbomb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rosinbomb and Greenshift Corp 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 Greenshift Corp are associated (or correlated) with Rosinbomb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rosinbomb has no effect on the direction of Greenshift Corp i.e., Greenshift Corp and Rosinbomb go up and down completely randomly.

Pair Corralation between Greenshift Corp and Rosinbomb

Given the investment horizon of 90 days Greenshift Corp is expected to generate 0.7 times more return on investment than Rosinbomb. However, Greenshift Corp is 1.42 times less risky than Rosinbomb. It trades about 0.04 of its potential returns per unit of risk. Rosinbomb is currently generating about 0.01 per unit of risk. If you would invest  3.00  in Greenshift Corp on September 13, 2024 and sell it today you would lose (0.35) from holding Greenshift Corp or give up 11.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Greenshift Corp  vs.  Rosinbomb

Greenshift Corp

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Greenshift Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Greenshift Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Rosinbomb

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Rosinbomb has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very fragile basic indicators, Rosinbomb may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Greenshift Corp and Rosinbomb

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

The idea behind Greenshift Corp and Rosinbomb 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.