Correlation Between Safe Bulkers and GreenPro Capital

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

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

Diversification Opportunities for Safe Bulkers and GreenPro Capital

-0.37

Correlation Coefficient

Safe Bulkers  GreenPro Capital

Very good diversification

The 3 months correlation between Safe and GreenPro is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Safe Bulkers and GreenPro Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPro Capital Corp and Safe Bulkers 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 Safe Bulkers are associated (or correlated) with GreenPro Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPro Capital Corp has no effect on the direction of Safe Bulkers i.e., Safe Bulkers and GreenPro Capital go up and down completely randomly.

Pair Corralation between Safe Bulkers and GreenPro Capital

Allowing for the 90-day total investment horizon Safe Bulkers is expected to under-perform the GreenPro Capital. But the stock apears to be less risky and, when comparing its historical volatility, Safe Bulkers is 3.63 times less risky than GreenPro Capital. The stock trades about -0.26 of its potential returns per unit of risk. The GreenPro Capital Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  96.00  in GreenPro Capital Corp on September 22, 2024 and sell it today you would earn a total of  9.00  from holding GreenPro Capital Corp or generate 9.38% return on investment over 90 days.

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

Safe Bulkers  vs.  GreenPro Capital Corp

Safe Bulkers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Safe Bulkers has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental drivers remain somewhat 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.

GreenPro Capital Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GreenPro Capital Corp are ranked lower than 4 (%) 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.

Pair Trading with Safe Bulkers and GreenPro Capital

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

The idea behind Safe Bulkers and GreenPro Capital Corp 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.