Correlation Between Greystone Logistics and Iofina Plc

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

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

Diversification Opportunities for Greystone Logistics and Iofina Plc

0.32

Correlation Coefficient

Greystone Logistics  Iofina Plc

Weak diversification

The 3 months correlation between Greystone and Iofina is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Greystone Logistics and Iofina plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iofina plc and Greystone Logistics 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 Greystone Logistics are associated (or correlated) with Iofina Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iofina plc has no effect on the direction of Greystone Logistics i.e., Greystone Logistics and Iofina Plc go up and down completely randomly.

Pair Corralation between Greystone Logistics and Iofina Plc

Given the investment horizon of 90 days Greystone Logistics is expected to under-perform the Iofina Plc. In addition to that, Greystone Logistics is 1.18 times more volatile than Iofina plc. It trades about -0.16 of its total potential returns per unit of risk. Iofina plc is currently generating about 0.04 per unit of volatility. If you would invest  24.00  in Iofina plc on August 30, 2024 and sell it today you would earn a total of  1.00  from holding Iofina plc or generate 4.17% return on investment over 90 days.

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

Greystone Logistics  vs.  Iofina plc

Greystone Logistics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greystone Logistics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Iofina plc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Iofina plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Iofina Plc may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Greystone Logistics and Iofina Plc

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

The idea behind Greystone Logistics and Iofina plc 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.