Correlation Between GreenPro Capital and Equifax

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

By analyzing existing cross correlation between GreenPro Capital Corp and Equifax, you can compare the effects of market volatilities on GreenPro Capital and Equifax 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 GreenPro Capital with a short position of Equifax. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenPro Capital and Equifax.

Diversification Opportunities for GreenPro Capital and Equifax

-0.38

Correlation Coefficient

GreenPro Capital  Equifax

Very good diversification

The 3 months correlation between GreenPro and Equifax is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GreenPro Capital Corp and Equifax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equifax and GreenPro Capital 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 GreenPro Capital Corp are associated (or correlated) with Equifax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equifax has no effect on the direction of GreenPro Capital i.e., GreenPro Capital and Equifax go up and down completely randomly.

Pair Corralation between GreenPro Capital and Equifax

Given the investment horizon of 90 days GreenPro Capital Corp is expected to generate 4.13 times more return on investment than Equifax. However, GreenPro Capital is 4.13 times more volatile than Equifax. It trades about 0.05 of its potential returns per unit of risk. Equifax is currently generating about -0.13 per unit of risk. If you would invest  94.00  in GreenPro Capital Corp on September 20, 2024 and sell it today you would earn a total of  7.00  from holding GreenPro Capital Corp or generate 7.45% return on investment over 90 days.

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

GreenPro Capital Corp  vs.  Equifax

GreenPro Capital Corp

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GreenPro Capital Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, GreenPro Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Equifax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Equifax has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with GreenPro Capital and Equifax

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

The idea behind GreenPro Capital Corp and Equifax 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.