Correlation Between Verde Bio and New Generation
Can any of the company-specific risk be diversified away by investing in both Verde Bio and New Generation 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 Verde Bio and New Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verde Bio Holdings and New Generation Consumer, you can compare the effects of market volatilities on Verde Bio and New Generation 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 Verde Bio with a short position of New Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verde Bio and New Generation.
Diversification Opportunities for Verde Bio and New Generation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Verde and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Verde Bio Holdings and New Generation Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Generation Consumer and Verde Bio 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 Verde Bio Holdings are associated (or correlated) with New Generation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Generation Consumer has no effect on the direction of Verde Bio i.e., Verde Bio and New Generation go up and down completely randomly.
Pair Corralation between Verde Bio and New Generation
Given the investment horizon of 90 days Verde Bio Holdings is expected to generate 1.85 times more return on investment than New Generation. However, Verde Bio is 1.85 times more volatile than New Generation Consumer. It trades about 0.06 of its potential returns per unit of risk. New Generation Consumer is currently generating about 0.03 per unit of risk. If you would invest 12.00 in Verde Bio Holdings on August 26, 2024 and sell it today you would lose (11.99) from holding Verde Bio Holdings or give up 99.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Verde Bio Holdings vs. New Generation Consumer
Performance |
| Timeline |
| Verde Bio Holdings |
| New Generation Consumer |
Verde Bio and New Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verde Bio and New Generation
The main advantage of trading using opposite Verde Bio and New Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verde Bio position performs unexpectedly, New Generation 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 New Generation will offset losses from the drop in New Generation's long position.| Verde Bio vs. Absolute Health and | Verde Bio vs. China Health Management | Verde Bio vs. Embrace Change Acquisition | Verde Bio vs. TransAKT |
| New Generation vs. Absolute Health and | New Generation vs. China Health Management | New Generation vs. Embrace Change Acquisition | New Generation vs. TransAKT |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |