Correlation Between Greentown Management and PAVmed Series

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

By analyzing existing cross correlation between Greentown Management Holdings and PAVmed Series Z, you can compare the effects of market volatilities on Greentown Management and PAVmed Series 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 Greentown Management with a short position of PAVmed Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greentown Management and PAVmed Series.

Diversification Opportunities for Greentown Management and PAVmed Series

0.0

Correlation Coefficient

Greentown Management  PAVmed Series

Pay attention - limited upside

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

Pair Corralation between Greentown Management and PAVmed Series

If you would invest  1.41  in PAVmed Series Z on October 23, 2024 and sell it today you would lose (0.18) from holding PAVmed Series Z or give up 12.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	66.13%
Values	Daily Returns

Greentown Management Holdings  vs.  PAVmed Series Z

Greentown Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greentown Management Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Greentown Management is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

PAVmed Series Z

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PAVmed Series Z are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, PAVmed Series showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Greentown Management and PAVmed Series

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

The idea behind Greentown Management Holdings and PAVmed Series Z 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 Global Correlations module to find global opportunities by holding instruments from different markets.