Correlation Between Green Panda and Storage Vault

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

By analyzing existing cross correlation between Green Panda Capital and Storage Vault Canada, you can compare the effects of market volatilities on Green Panda and Storage Vault 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 Green Panda with a short position of Storage Vault. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Panda and Storage Vault.

Diversification Opportunities for Green Panda and Storage Vault

0.0

Correlation Coefficient

Green Panda  Storage Vault

Pay attention - limited upside

The 3 months correlation between Green and Storage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Panda Capital and Storage Vault Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storage Vault Canada and Green Panda 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 Green Panda Capital are associated (or correlated) with Storage Vault. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storage Vault Canada has no effect on the direction of Green Panda i.e., Green Panda and Storage Vault go up and down completely randomly.

Pair Corralation between Green Panda and Storage Vault

If you would invest  7.50  in Green Panda Capital on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Green Panda Capital or generate 0.0% return on investment over 90 days.

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

Green Panda Capital  vs.  Storage Vault Canada

Green Panda Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Green Panda Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Green Panda is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Storage Vault Canada

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Storage Vault Canada 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 forward indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Green Panda and Storage Vault

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

The idea behind Green Panda Capital and Storage Vault Canada 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.