Correlation Between GrowGeneration Corp and Amyris

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

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

Diversification Opportunities for GrowGeneration Corp and Amyris

0.0

Correlation Coefficient

GrowGeneration Corp  Amyris

Pay attention - limited upside

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

Pair Corralation between GrowGeneration Corp and Amyris

If you would invest (100.00) in Amyris Inc on December 23, 2024 and sell it today you would earn a total of  100.00  from holding Amyris Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GrowGeneration Corp  vs.  Amyris Inc

GrowGeneration Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days GrowGeneration Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating 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.

Amyris Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amyris Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Amyris is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GrowGeneration Corp and Amyris

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

The idea behind GrowGeneration Corp and Amyris Inc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.