Correlation Between Penns Woods and Greenbrook TMS

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

By analyzing existing cross correlation between Penns Woods Bancorp and Greenbrook TMS, you can compare the effects of market volatilities on Penns Woods and Greenbrook TMS 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 Penns Woods with a short position of Greenbrook TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penns Woods and Greenbrook TMS.

Diversification Opportunities for Penns Woods and Greenbrook TMS

-0.41

Correlation Coefficient

Penns Woods  Greenbrook TMS

Very good diversification

The 3 months correlation between Penns and Greenbrook is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Penns Woods Bancorp and Greenbrook TMS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenbrook TMS and Penns Woods 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 Penns Woods Bancorp are associated (or correlated) with Greenbrook TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenbrook TMS has no effect on the direction of Penns Woods i.e., Penns Woods and Greenbrook TMS go up and down completely randomly.

Pair Corralation between Penns Woods and Greenbrook TMS

If you would invest  3,012  in Penns Woods Bancorp on September 23, 2024 and sell it today you would earn a total of  145.00  from holding Penns Woods Bancorp or generate 4.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Penns Woods Bancorp  vs.  Greenbrook TMS

Penns Woods Bancorp

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Penns Woods Bancorp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Penns Woods exhibited solid returns over the last few months and may actually be approaching a breakup point.

Greenbrook TMS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Penns Woods and Greenbrook TMS

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

The idea behind Penns Woods Bancorp and Greenbrook TMS 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.