Correlation Between Green Cures and Genomma Lab
Can any of the company-specific risk be diversified away by investing in both Green Cures and Genomma Lab 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 Cures and Genomma Lab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Cures Botanical and Genomma Lab Internacional, you can compare the effects of market volatilities on Green Cures and Genomma Lab 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 Cures with a short position of Genomma Lab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cures and Genomma Lab.
Diversification Opportunities for Green Cures and Genomma Lab
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Green and Genomma is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Green Cures Botanical and Genomma Lab Internacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genomma Lab Internacional and Green Cures 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 Cures Botanical are associated (or correlated) with Genomma Lab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genomma Lab Internacional has no effect on the direction of Green Cures i.e., Green Cures and Genomma Lab go up and down completely randomly.
Pair Corralation between Green Cures and Genomma Lab
Given the investment horizon of 90 days Green Cures Botanical is expected to generate 6.59 times more return on investment than Genomma Lab. However, Green Cures is 6.59 times more volatile than Genomma Lab Internacional. It trades about 0.2 of its potential returns per unit of risk. Genomma Lab Internacional is currently generating about 0.15 per unit of risk. If you would invest 0.01 in Green Cures Botanical on August 28, 2024 and sell it today you would earn a total of 0.01 from holding Green Cures Botanical or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.72% |
| Values | Daily Returns |
Green Cures Botanical vs. Genomma Lab Internacional
Performance |
| Timeline |
| Green Cures Botanical |
| Genomma Lab Internacional |
Green Cures and Genomma Lab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cures and Genomma Lab
The main advantage of trading using opposite Green Cures and Genomma Lab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cures position performs unexpectedly, Genomma Lab 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 Genomma Lab will offset losses from the drop in Genomma Lab's long position.The idea behind Green Cures Botanical and Genomma Lab Internacional pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Genomma Lab vs. Speakeasy Cannabis Club | Genomma Lab vs. City View Green | Genomma Lab vs. Benchmark Botanics | Genomma Lab vs. Hypera SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |