Correlation Between Green Planet and Generation Asia
Can any of the company-specific risk be diversified away by investing in both Green Planet and Generation Asia 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 Green Planet and Generation Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Planet Bio and Generation Asia I, you can compare the effects of market volatilities on Green Planet and Generation Asia 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 Green Planet with a short position of Generation Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Planet and Generation Asia.
Diversification Opportunities for Green Planet and Generation Asia
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Green and Generation is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Planet Bio and Generation Asia I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Asia I and Green Planet 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 Green Planet Bio are associated (or correlated) with Generation Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Asia I has no effect on the direction of Green Planet i.e., Green Planet and Generation Asia go up and down completely randomly.
Pair Corralation between Green Planet and Generation Asia
If you would invest 1,140 in Generation Asia I on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Generation Asia I or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Green Planet Bio vs. Generation Asia I
Performance |
| Timeline |
| Green Planet Bio |
| Generation Asia I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Green Planet and Generation Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Planet and Generation Asia
The main advantage of trading using opposite Green Planet and Generation Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Planet position performs unexpectedly, Generation Asia 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 Generation Asia will offset losses from the drop in Generation Asia's long position.| Green Planet vs. Zhihu Inc ADR | Green Planet vs. Ambev SA ADR | Green Planet vs. RLX Technology | Green Planet vs. Integral Ad Science |
| Generation Asia vs. Green Planet Bio | Generation Asia vs. Opus Magnum Ameris | Generation Asia vs. Azure Holding Group | Generation Asia vs. Four Leaf Acquisition |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |