Correlation Between GelStat Corp and Grown Rogue

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

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

Diversification Opportunities for GelStat Corp and Grown Rogue

0.31

Correlation Coefficient

GelStat Corp  Grown Rogue

Weak diversification

The 3 months correlation between GelStat and Grown is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding GelStat Corp and Grown Rogue International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grown Rogue International and GelStat 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 GelStat Corp are associated (or correlated) with Grown Rogue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grown Rogue International has no effect on the direction of GelStat Corp i.e., GelStat Corp and Grown Rogue go up and down completely randomly.

Pair Corralation between GelStat Corp and Grown Rogue

If you would invest  0.03  in GelStat Corp on October 26, 2024 and sell it today you would earn a total of  0.00  from holding GelStat Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	90.0%
Values	Daily Returns

GelStat Corp  vs.  Grown Rogue International

GelStat Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GelStat Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, GelStat Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Grown Rogue International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grown Rogue International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with GelStat Corp and Grown Rogue

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

The idea behind GelStat Corp and Grown Rogue International 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.