Correlation Between Greengro Tech and Austin Engineering

Can any of the company-specific risk be diversified away by investing in both Greengro Tech and Austin Engineering 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 Greengro Tech and Austin Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Greengro Tech and Austin Engineering Limited, you can compare the effects of market volatilities on Greengro Tech and Austin Engineering 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 Greengro Tech with a short position of Austin Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greengro Tech and Austin Engineering.

Diversification Opportunities for Greengro Tech and Austin Engineering

0.0

Correlation Coefficient

Greengro Tech  Austin Engineering

Pay attention - limited upside

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

Pair Corralation between Greengro Tech and Austin Engineering

If you would invest  0.00  in Greengro Tech on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Greengro Tech or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

Greengro Tech  vs.  Austin Engineering Limited

Greengro Tech

Risk-Adjusted Performance

Very Weak

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

Austin Engineering

Risk-Adjusted Performance

Very Weak

Over the last 90 days Austin Engineering Limited 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 basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Greengro Tech and Austin Engineering

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

The idea behind Greengro Tech and Austin Engineering Limited 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.