Correlation Between Afya and Greenland Technologies
Can any of the company-specific risk be diversified away by investing in both Afya and Greenland Technologies 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 Afya and Greenland Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afya and Greenland Technologies Holding, you can compare the effects of market volatilities on Afya and Greenland Technologies 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 Afya with a short position of Greenland Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afya and Greenland Technologies.
Diversification Opportunities for Afya and Greenland Technologies
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Afya and Greenland is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Afya and Greenland Technologies Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Technologies and Afya 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 Afya are associated (or correlated) with Greenland Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Technologies has no effect on the direction of Afya i.e., Afya and Greenland Technologies go up and down completely randomly.
Pair Corralation between Afya and Greenland Technologies
Given the investment horizon of 90 days Afya is expected to generate 162.2 times less return on investment than Greenland Technologies. But when comparing it to its historical volatility, Afya is 21.57 times less risky than Greenland Technologies. It trades about 0.02 of its potential returns per unit of risk. Greenland Technologies Holding is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Greenland Technologies Holding on September 4, 2024 and sell it today you would lose (14.80) from holding Greenland Technologies Holding or give up 74.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.85% |
| Values | Daily Returns |
Afya vs. Greenland Technologies Holding
Performance |
| Timeline |
| Afya |
| Greenland Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Afya and Greenland Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afya and Greenland Technologies
The main advantage of trading using opposite Afya and Greenland Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afya position performs unexpectedly, Greenland Technologies 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 Greenland Technologies will offset losses from the drop in Greenland Technologies' long position.| Afya vs. Laureate Education | Afya vs. Lincoln Educational Services | Afya vs. Adtalem Global Education | Afya vs. Strategic Education |
| Greenland Technologies vs. Relx PLC ADR | Greenland Technologies vs. Scholastic | Greenland Technologies vs. Coursera | Greenland Technologies vs. Afya |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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