Correlation Between Greystone Logistics and BioNexus Gene
Can any of the company-specific risk be diversified away by investing in both Greystone Logistics and BioNexus Gene 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 Greystone Logistics and BioNexus Gene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greystone Logistics and BioNexus Gene Lab, you can compare the effects of market volatilities on Greystone Logistics and BioNexus Gene 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 Greystone Logistics with a short position of BioNexus Gene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greystone Logistics and BioNexus Gene.
Diversification Opportunities for Greystone Logistics and BioNexus Gene
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Greystone and BioNexus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Greystone Logistics and BioNexus Gene Lab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNexus Gene Lab and Greystone Logistics 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 Greystone Logistics are associated (or correlated) with BioNexus Gene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNexus Gene Lab has no effect on the direction of Greystone Logistics i.e., Greystone Logistics and BioNexus Gene go up and down completely randomly.
Pair Corralation between Greystone Logistics and BioNexus Gene
Given the investment horizon of 90 days Greystone Logistics is expected to generate 3.93 times less return on investment than BioNexus Gene. But when comparing it to its historical volatility, Greystone Logistics is 5.18 times less risky than BioNexus Gene. It trades about 0.02 of its potential returns per unit of risk. BioNexus Gene Lab is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 79.00 in BioNexus Gene Lab on September 2, 2024 and sell it today you would lose (56.00) from holding BioNexus Gene Lab or give up 70.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greystone Logistics vs. BioNexus Gene Lab
Performance |
| Timeline |
| Greystone Logistics |
| BioNexus Gene Lab |
Greystone Logistics and BioNexus Gene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greystone Logistics and BioNexus Gene
The main advantage of trading using opposite Greystone Logistics and BioNexus Gene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greystone Logistics position performs unexpectedly, BioNexus Gene 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 BioNexus Gene will offset losses from the drop in BioNexus Gene's long position.| Greystone Logistics vs. South32 Limited | Greystone Logistics vs. NioCorp Developments Ltd | Greystone Logistics vs. HUMANA INC | Greystone Logistics vs. SCOR PK |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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