Correlation Between Edgewell Personal and Greencity Acquisition
Can any of the company-specific risk be diversified away by investing in both Edgewell Personal and Greencity Acquisition 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 Edgewell Personal and Greencity Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edgewell Personal Care and Greencity Acquisition Corp, you can compare the effects of market volatilities on Edgewell Personal and Greencity Acquisition 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 Edgewell Personal with a short position of Greencity Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewell Personal and Greencity Acquisition.
Diversification Opportunities for Edgewell Personal and Greencity Acquisition
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Edgewell and Greencity is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Edgewell Personal Care and Greencity Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencity Acquisition and Edgewell Personal 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 Edgewell Personal Care are associated (or correlated) with Greencity Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greencity Acquisition has no effect on the direction of Edgewell Personal i.e., Edgewell Personal and Greencity Acquisition go up and down completely randomly.
Pair Corralation between Edgewell Personal and Greencity Acquisition
Considering the 90-day investment horizon Edgewell Personal Care is expected to under-perform the Greencity Acquisition. In addition to that, Edgewell Personal is 2.31 times more volatile than Greencity Acquisition Corp. It trades about 0.0 of its total potential returns per unit of risk. Greencity Acquisition Corp is currently generating about 0.09 per unit of volatility. If you would invest 1,066 in Greencity Acquisition Corp on September 13, 2024 and sell it today you would earn a total of 80.00 from holding Greencity Acquisition Corp or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 25.66% |
| Values | Daily Returns |
Edgewell Personal Care vs. Greencity Acquisition Corp
Performance |
| Timeline |
| Edgewell Personal Care |
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Edgewell Personal and Greencity Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edgewell Personal and Greencity Acquisition
The main advantage of trading using opposite Edgewell Personal and Greencity Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewell Personal position performs unexpectedly, Greencity Acquisition 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 Greencity Acquisition will offset losses from the drop in Greencity Acquisition's long position.| Edgewell Personal vs. Mannatech Incorporated | Edgewell Personal vs. Inter Parfums | Edgewell Personal vs. Nu Skin Enterprises | Edgewell Personal vs. Helen of Troy |
| Greencity Acquisition vs. Sweetgreen | Greencity Acquisition vs. Steven Madden | Greencity Acquisition vs. Meli Hotels International | Greencity Acquisition vs. Edgewell Personal Care |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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