Correlation Between PKSHA TECHNOLOGY and GREENLIGHT CAP
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and GREENLIGHT CAP 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 PKSHA TECHNOLOGY and GREENLIGHT CAP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and GREENLIGHT CAP RE, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and GREENLIGHT CAP 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 PKSHA TECHNOLOGY with a short position of GREENLIGHT CAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and GREENLIGHT CAP.
Diversification Opportunities for PKSHA TECHNOLOGY and GREENLIGHT CAP
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PKSHA and GREENLIGHT is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and GREENLIGHT CAP RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENLIGHT CAP RE and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with GREENLIGHT CAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENLIGHT CAP RE has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and GREENLIGHT CAP go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and GREENLIGHT CAP
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to under-perform the GREENLIGHT CAP. In addition to that, PKSHA TECHNOLOGY is 2.22 times more volatile than GREENLIGHT CAP RE. It trades about -0.09 of its total potential returns per unit of risk. GREENLIGHT CAP RE is currently generating about -0.08 per unit of volatility. If you would invest 1,320 in GREENLIGHT CAP RE on November 7, 2024 and sell it today you would lose (40.00) from holding GREENLIGHT CAP RE or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. GREENLIGHT CAP RE
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| GREENLIGHT CAP RE |
PKSHA TECHNOLOGY and GREENLIGHT CAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and GREENLIGHT CAP
The main advantage of trading using opposite PKSHA TECHNOLOGY and GREENLIGHT CAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, GREENLIGHT CAP 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 GREENLIGHT CAP will offset losses from the drop in GREENLIGHT CAP's long position.| PKSHA TECHNOLOGY vs. PLAYSTUDIOS A DL 0001 | PKSHA TECHNOLOGY vs. ANTA SPORTS PRODUCT | PKSHA TECHNOLOGY vs. The Yokohama Rubber | PKSHA TECHNOLOGY vs. NAKED WINES PLC |
| GREENLIGHT CAP vs. Apple Inc | GREENLIGHT CAP vs. Apple Inc | GREENLIGHT CAP vs. Apple Inc | GREENLIGHT CAP vs. Apple Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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