Correlation Between GreenBank Capital and MGT Capital
Can any of the company-specific risk be diversified away by investing in both GreenBank Capital and MGT Capital 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 GreenBank Capital and MGT Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenBank Capital and MGT Capital Investments, you can compare the effects of market volatilities on GreenBank Capital and MGT Capital 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 GreenBank Capital with a short position of MGT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenBank Capital and MGT Capital.
Diversification Opportunities for GreenBank Capital and MGT Capital
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenBank and MGT is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding GreenBank Capital and MGT Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGT Capital Investments and GreenBank Capital 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 GreenBank Capital are associated (or correlated) with MGT Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGT Capital Investments has no effect on the direction of GreenBank Capital i.e., GreenBank Capital and MGT Capital go up and down completely randomly.
Pair Corralation between GreenBank Capital and MGT Capital
If you would invest 0.60 in MGT Capital Investments on August 26, 2024 and sell it today you would earn a total of 0.00 from holding MGT Capital Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
GreenBank Capital vs. MGT Capital Investments
Performance |
| Timeline |
| GreenBank Capital |
| MGT Capital Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GreenBank Capital and MGT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenBank Capital and MGT Capital
The main advantage of trading using opposite GreenBank Capital and MGT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenBank Capital position performs unexpectedly, MGT Capital 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 MGT Capital will offset losses from the drop in MGT Capital's long position.| GreenBank Capital vs. Invesco High Income | GreenBank Capital vs. Blackrock Muniholdings Ny | GreenBank Capital vs. MFS Investment Grade | GreenBank Capital vs. Federated Premier Municipal |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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