Correlation Between Greentown Management and 784730AB9

Can any of the company-specific risk be diversified away by investing in both Greentown Management and 784730AB9 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 784730AB9 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 US784730AB94, you can compare the effects of market volatilities on Greentown Management and 784730AB9 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 784730AB9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greentown Management and 784730AB9.

Diversification Opportunities for Greentown Management and 784730AB9

-0.05

Correlation Coefficient

Greentown Management  784730AB9

Good diversification

The 3 months correlation between Greentown and 784730AB9 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Greentown Management Holdings and US784730AB94 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US784730AB94 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 784730AB9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US784730AB94 has no effect on the direction of Greentown Management i.e., Greentown Management and 784730AB9 go up and down completely randomly.

Pair Corralation between Greentown Management and 784730AB9

If you would invest  9,538  in US784730AB94 on October 7, 2024 and sell it today you would earn a total of  214.00  from holding US784730AB94 or generate 2.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	27.91%
Values	Daily Returns

Greentown Management Holdings  vs.  US784730AB94

Greentown Management

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Greentown Management Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical indicators, Greentown Management may actually be approaching a critical reversion point that can send shares even higher in February 2025.

US784730AB94

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in US784730AB94 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, 784730AB9 may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Greentown Management and 784730AB9

The main advantage of trading using opposite Greentown Management and 784730AB9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greentown Management position performs unexpectedly, 784730AB9 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 784730AB9 will offset losses from the drop in 784730AB9's long position.

The idea behind Greentown Management Holdings and US784730AB94 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.