Correlation Between Green Cross and A Tech
Can any of the company-specific risk be diversified away by investing in both Green Cross and A Tech 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 Green Cross and A Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Cross Medical and A Tech Solution Co, you can compare the effects of market volatilities on Green Cross and A Tech 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 Green Cross with a short position of A Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cross and A Tech.
Diversification Opportunities for Green Cross and A Tech
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Green and 071670 is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Green Cross Medical and A Tech Solution Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Tech Solution and Green Cross 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 Green Cross Medical are associated (or correlated) with A Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Tech Solution has no effect on the direction of Green Cross i.e., Green Cross and A Tech go up and down completely randomly.
Pair Corralation between Green Cross and A Tech
Assuming the 90 days trading horizon Green Cross Medical is expected to generate 1.02 times more return on investment than A Tech. However, Green Cross is 1.02 times more volatile than A Tech Solution Co. It trades about -0.11 of its potential returns per unit of risk. A Tech Solution Co is currently generating about -0.12 per unit of risk. If you would invest 433,000 in Green Cross Medical on September 3, 2024 and sell it today you would lose (67,000) from holding Green Cross Medical or give up 15.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Cross Medical vs. A Tech Solution Co
Performance |
| Timeline |
| Green Cross Medical |
| A Tech Solution |
Green Cross and A Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cross and A Tech
The main advantage of trading using opposite Green Cross and A Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cross position performs unexpectedly, A Tech 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 A Tech will offset losses from the drop in A Tech's long position.| Green Cross vs. Samsung Card Co | Green Cross vs. EBEST Investment Securities | Green Cross vs. Koh Young Technology | Green Cross vs. Hansol Chemica |
| A Tech vs. National Plastic Co | A Tech vs. ECSTELECOM Co | A Tech vs. Green Cross Medical | A Tech vs. Phoenix Materials Co |
Check out your portfolio center.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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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