Correlation Between Green Cross and Innowireless
Can any of the company-specific risk be diversified away by investing in both Green Cross and Innowireless 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 Innowireless 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 Innowireless Co, you can compare the effects of market volatilities on Green Cross and Innowireless 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 Innowireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cross and Innowireless.
Diversification Opportunities for Green Cross and Innowireless
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Green and Innowireless is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Green Cross Medical and Innowireless Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innowireless 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 Innowireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innowireless has no effect on the direction of Green Cross i.e., Green Cross and Innowireless go up and down completely randomly.
Pair Corralation between Green Cross and Innowireless
Assuming the 90 days trading horizon Green Cross Medical is expected to generate 2.47 times more return on investment than Innowireless. However, Green Cross is 2.47 times more volatile than Innowireless Co. It trades about 0.27 of its potential returns per unit of risk. Innowireless Co is currently generating about 0.09 per unit of risk. If you would invest 349,500 in Green Cross Medical on October 13, 2024 and sell it today you would earn a total of 89,500 from holding Green Cross Medical or generate 25.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Green Cross Medical vs. Innowireless Co
Performance |
Timeline |
Green Cross Medical |
Innowireless |
Green Cross and Innowireless Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Green Cross and Innowireless
The main advantage of trading using opposite Green Cross and Innowireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cross position performs unexpectedly, Innowireless 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 Innowireless will offset losses from the drop in Innowireless' long position.Green Cross vs. Global Standard Technology | Green Cross vs. J Steel Co | Green Cross vs. Seah Steel Corp | Green Cross vs. NewFlex Technology Co |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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