Correlation Between GREENWICH ASSET and SECURE ELECTRONIC

Can any of the company-specific risk be diversified away by investing in both GREENWICH ASSET and SECURE ELECTRONIC 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 SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY, you can compare the effects of market volatilities on GREENWICH ASSET and SECURE ELECTRONIC 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 SECURE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENWICH ASSET and SECURE ELECTRONIC.

Diversification Opportunities for GREENWICH ASSET and SECURE ELECTRONIC

0.22

Correlation Coefficient

GREENWICH ASSET  SECURE ELECTRONIC

Modest diversification

The 3 months correlation between GREENWICH and SECURE is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GREENWICH ASSET ETF and SECURE ELECTRONIC TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECURE ELECTRONIC 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 SECURE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECURE ELECTRONIC has no effect on the direction of GREENWICH ASSET i.e., GREENWICH ASSET and SECURE ELECTRONIC go up and down completely randomly.

Pair Corralation between GREENWICH ASSET and SECURE ELECTRONIC

Assuming the 90 days trading horizon GREENWICH ASSET ETF is expected to under-perform the SECURE ELECTRONIC. But the stock apears to be less risky and, when comparing its historical volatility, GREENWICH ASSET ETF is 1.37 times less risky than SECURE ELECTRONIC. The stock trades about -0.14 of its potential returns per unit of risk. The SECURE ELECTRONIC TECHNOLOGY is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  70.00  in SECURE ELECTRONIC TECHNOLOGY on September 12, 2024 and sell it today you would lose (13.00) from holding SECURE ELECTRONIC TECHNOLOGY or give up 18.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

GREENWICH ASSET ETF  vs.  SECURE ELECTRONIC TECHNOLOGY

GREENWICH ASSET ETF

Risk-Adjusted Performance

0 of 100

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 uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

SECURE ELECTRONIC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SECURE ELECTRONIC TECHNOLOGY 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 fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with GREENWICH ASSET and SECURE ELECTRONIC

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

The idea behind GREENWICH ASSET ETF and SECURE ELECTRONIC TECHNOLOGY 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.

Check out your portfolio center.

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 CEOs Directory module to screen CEOs from public companies around the world.