Correlation Between Green Cross and Wireless Power
Can any of the company-specific risk be diversified away by investing in both Green Cross and Wireless Power 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 Wireless Power 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 Wireless Power Amplifier, you can compare the effects of market volatilities on Green Cross and Wireless Power 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 Wireless Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cross and Wireless Power.
Diversification Opportunities for Green Cross and Wireless Power
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Green and Wireless is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Green Cross Medical and Wireless Power Amplifier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Power Amplifier 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 Wireless Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Power Amplifier has no effect on the direction of Green Cross i.e., Green Cross and Wireless Power go up and down completely randomly.
Pair Corralation between Green Cross and Wireless Power
Assuming the 90 days trading horizon Green Cross is expected to generate 15.37 times less return on investment than Wireless Power. In addition to that, Green Cross is 1.34 times more volatile than Wireless Power Amplifier. It trades about 0.01 of its total potential returns per unit of risk. Wireless Power Amplifier is currently generating about 0.21 per unit of volatility. If you would invest 227,000 in Wireless Power Amplifier on September 19, 2024 and sell it today you would earn a total of 22,500 from holding Wireless Power Amplifier or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Green Cross Medical vs. Wireless Power Amplifier
Performance |
| Timeline |
| Green Cross Medical |
| Wireless Power Amplifier |
Green Cross and Wireless Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cross and Wireless Power
The main advantage of trading using opposite Green Cross and Wireless Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cross position performs unexpectedly, Wireless Power 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 Wireless Power will offset losses from the drop in Wireless Power's long position.| Green Cross vs. Hyunwoo Industrial Co | Green Cross vs. Foodnamoo | Green Cross vs. Kumho Industrial Co | Green Cross vs. Haitai Confectionery Foods |
| Wireless Power vs. CU Medical Systems | Wireless Power vs. Youngbo Chemical Co | Wireless Power vs. Green Cross Medical | Wireless Power vs. Innowireless 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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