Correlation Between GREENWICH ASSET and C I

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

By analyzing existing cross correlation between GREENWICH ASSET ETF and C I LEASING, you can compare the effects of market volatilities on GREENWICH ASSET and C I 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 GREENWICH ASSET with a short position of C I. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENWICH ASSET and C I.

Diversification Opportunities for GREENWICH ASSET and C I

0.14

Correlation Coefficient

GREENWICH ASSET  C I

Average diversification

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

Pair Corralation between GREENWICH ASSET and C I

Assuming the 90 days trading horizon GREENWICH ASSET ETF is expected to generate 1.13 times more return on investment than C I. However, GREENWICH ASSET is 1.13 times more volatile than C I LEASING. It trades about 0.01 of its potential returns per unit of risk. C I LEASING is currently generating about -0.02 per unit of risk. If you would invest  53,000  in GREENWICH ASSET ETF on December 2, 2024 and sell it today you would lose (135.00) from holding GREENWICH ASSET ETF or give up 0.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GREENWICH ASSET ETF  vs.  C I LEASING

GREENWICH ASSET ETF

Risk-Adjusted Performance

Very Weak

Over the last 90 days GREENWICH ASSET ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, GREENWICH ASSET is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

C I LEASING

Risk-Adjusted Performance

Very Weak

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

Pair Trading with GREENWICH ASSET and C I

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

The idea behind GREENWICH ASSET ETF and C I LEASING 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .