Correlation Between Aemetis and GrowGeneration Corp
Can any of the company-specific risk be diversified away by investing in both Aemetis and GrowGeneration Corp 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 Aemetis and GrowGeneration Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aemetis and GrowGeneration Corp, you can compare the effects of market volatilities on Aemetis and GrowGeneration Corp 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 Aemetis with a short position of GrowGeneration Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aemetis and GrowGeneration Corp.
Diversification Opportunities for Aemetis and GrowGeneration Corp
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aemetis and GrowGeneration is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aemetis and GrowGeneration Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrowGeneration Corp and Aemetis 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 Aemetis are associated (or correlated) with GrowGeneration Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrowGeneration Corp has no effect on the direction of Aemetis i.e., Aemetis and GrowGeneration Corp go up and down completely randomly.
Pair Corralation between Aemetis and GrowGeneration Corp
Given the investment horizon of 90 days Aemetis is expected to generate 1.69 times more return on investment than GrowGeneration Corp. However, Aemetis is 1.69 times more volatile than GrowGeneration Corp. It trades about 0.28 of its potential returns per unit of risk. GrowGeneration Corp is currently generating about -0.04 per unit of risk. If you would invest 265.00 in Aemetis on September 2, 2024 and sell it today you would earn a total of 144.00 from holding Aemetis or generate 54.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aemetis vs. GrowGeneration Corp
Performance |
| Timeline |
| Aemetis |
| GrowGeneration Corp |
Aemetis and GrowGeneration Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aemetis and GrowGeneration Corp
The main advantage of trading using opposite Aemetis and GrowGeneration Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aemetis position performs unexpectedly, GrowGeneration Corp 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 GrowGeneration Corp will offset losses from the drop in GrowGeneration Corp's long position.| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. Vertex Energy |
| GrowGeneration Corp vs. Evgo Inc | GrowGeneration Corp vs. Ulta Beauty | GrowGeneration Corp vs. Best Buy Co | GrowGeneration Corp vs. RH |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |