Correlation Between Nano One and Greystone Logistics

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

By analyzing existing cross correlation between Nano One Materials and Greystone Logistics, you can compare the effects of market volatilities on Nano One and Greystone Logistics 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 Nano One with a short position of Greystone Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano One and Greystone Logistics.

Diversification Opportunities for Nano One and Greystone Logistics

0.15

Correlation Coefficient

Nano One  Greystone Logistics

Average diversification

The 3 months correlation between Nano and Greystone is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nano One Materials and Greystone Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greystone Logistics and Nano One 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 Nano One Materials are associated (or correlated) with Greystone Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greystone Logistics has no effect on the direction of Nano One i.e., Nano One and Greystone Logistics go up and down completely randomly.

Pair Corralation between Nano One and Greystone Logistics

Assuming the 90 days horizon Nano One Materials is expected to under-perform the Greystone Logistics. In addition to that, Nano One is 1.95 times more volatile than Greystone Logistics. It trades about -0.08 of its total potential returns per unit of risk. Greystone Logistics is currently generating about -0.02 per unit of volatility. If you would invest  104.00  in Greystone Logistics on December 29, 2024 and sell it today you would lose (4.00) from holding Greystone Logistics or give up 3.85% of portfolio value over 90 days.

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

Nano One Materials  vs.  Greystone Logistics

Nano One Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nano One Materials has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's primary 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.

Greystone Logistics

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Nano One and Greystone Logistics

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

The idea behind Nano One Materials and Greystone Logistics 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 Anywhere module to track or share privately all of your investments from the convenience of any device.