Correlation Between TransGlobal Assets and Grey Cloak

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

By analyzing existing cross correlation between TransGlobal Assets and Grey Cloak Tech, you can compare the effects of market volatilities on TransGlobal Assets and Grey Cloak 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 TransGlobal Assets with a short position of Grey Cloak. Check out your portfolio center. Please also check ongoing floating volatility patterns of TransGlobal Assets and Grey Cloak.

Diversification Opportunities for TransGlobal Assets and Grey Cloak

0.19

Correlation Coefficient

TransGlobal Assets  Grey Cloak

Average diversification

The 3 months correlation between TransGlobal and Grey is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding TransGlobal Assets and Grey Cloak Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grey Cloak Tech and TransGlobal Assets 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 TransGlobal Assets are associated (or correlated) with Grey Cloak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grey Cloak Tech has no effect on the direction of TransGlobal Assets i.e., TransGlobal Assets and Grey Cloak go up and down completely randomly.

Pair Corralation between TransGlobal Assets and Grey Cloak

Given the investment horizon of 90 days TransGlobal Assets is expected to generate 3.24 times more return on investment than Grey Cloak. However, TransGlobal Assets is 3.24 times more volatile than Grey Cloak Tech. It trades about 0.16 of its potential returns per unit of risk. Grey Cloak Tech is currently generating about -0.01 per unit of risk. If you would invest  0.02  in TransGlobal Assets on December 29, 2024 and sell it today you would earn a total of  0.02  from holding TransGlobal Assets or generate 100.0% return on investment over 90 days.

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

TransGlobal Assets  vs.  Grey Cloak Tech

TransGlobal Assets

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TransGlobal Assets are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, TransGlobal Assets demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Grey Cloak Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grey Cloak Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Grey Cloak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with TransGlobal Assets and Grey Cloak

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

The idea behind TransGlobal Assets and Grey Cloak Tech 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..