Correlation Between THiRA-UTECH and Green Cross
Can any of the company-specific risk be diversified away by investing in both THiRA-UTECH and Green Cross 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 THiRA-UTECH and Green Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THiRA UTECH LTD and Green Cross Medical, you can compare the effects of market volatilities on THiRA-UTECH and Green Cross 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 THiRA-UTECH with a short position of Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of THiRA-UTECH and Green Cross.
Diversification Opportunities for THiRA-UTECH and Green Cross
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between THiRA-UTECH and Green is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding THiRA UTECH LTD and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross Medical and THiRA-UTECH 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 THiRA UTECH LTD are associated (or correlated) with Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of THiRA-UTECH i.e., THiRA-UTECH and Green Cross go up and down completely randomly.
Pair Corralation between THiRA-UTECH and Green Cross
Assuming the 90 days trading horizon THiRA UTECH LTD is expected to under-perform the Green Cross. In addition to that, THiRA-UTECH is 1.07 times more volatile than Green Cross Medical. It trades about -0.21 of its total potential returns per unit of risk. Green Cross Medical is currently generating about -0.1 per unit of volatility. If you would invest 405,500 in Green Cross Medical on September 22, 2024 and sell it today you would lose (49,000) from holding Green Cross Medical or give up 12.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THiRA UTECH LTD vs. Green Cross Medical
Performance |
| Timeline |
| THiRA UTECH LTD |
| Green Cross Medical |
THiRA-UTECH and Green Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THiRA-UTECH and Green Cross
The main advantage of trading using opposite THiRA-UTECH and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THiRA-UTECH position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.| THiRA-UTECH vs. Kakao Games Corp | THiRA-UTECH vs. Posco ICT | THiRA-UTECH vs. Devsisters corporation | THiRA-UTECH vs. Konan Technology |
| Green Cross vs. DIO Corporation | Green Cross vs. Medy Tox | Green Cross vs. InBody CoLtd | Green Cross vs. Soulbrain Holdings 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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