Correlation Between GreenTech Environmental and Yankershop Food
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By analyzing existing cross correlation between GreenTech Environmental Co and Yankershop Food Co, you can compare the effects of market volatilities on GreenTech Environmental and Yankershop Food 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 GreenTech Environmental with a short position of Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTech Environmental and Yankershop Food.
Diversification Opportunities for GreenTech Environmental and Yankershop Food
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GreenTech and Yankershop is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding GreenTech Environmental Co and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food and GreenTech Environmental 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 GreenTech Environmental Co are associated (or correlated) with Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of GreenTech Environmental i.e., GreenTech Environmental and Yankershop Food go up and down completely randomly.
Pair Corralation between GreenTech Environmental and Yankershop Food
Assuming the 90 days trading horizon GreenTech Environmental Co is expected to generate 1.28 times more return on investment than Yankershop Food. However, GreenTech Environmental is 1.28 times more volatile than Yankershop Food Co. It trades about 0.01 of its potential returns per unit of risk. Yankershop Food Co is currently generating about 0.0 per unit of risk. If you would invest 1,663 in GreenTech Environmental Co on August 27, 2024 and sell it today you would lose (99.00) from holding GreenTech Environmental Co or give up 5.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTech Environmental Co vs. Yankershop Food Co
Performance |
| Timeline |
| GreenTech Environmental |
| Yankershop Food |
GreenTech Environmental and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTech Environmental and Yankershop Food
The main advantage of trading using opposite GreenTech Environmental and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTech Environmental position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.The idea behind GreenTech Environmental Co and Yankershop Food Co 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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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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