Correlation Between Greengro Tech and Lindsay
Can any of the company-specific risk be diversified away by investing in both Greengro Tech and Lindsay 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 Greengro Tech and Lindsay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greengro Tech and Lindsay, you can compare the effects of market volatilities on Greengro Tech and Lindsay 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 Greengro Tech with a short position of Lindsay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greengro Tech and Lindsay.
Diversification Opportunities for Greengro Tech and Lindsay
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greengro and Lindsay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greengro Tech and Lindsay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindsay and Greengro Tech 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 Greengro Tech are associated (or correlated) with Lindsay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindsay has no effect on the direction of Greengro Tech i.e., Greengro Tech and Lindsay go up and down completely randomly.
Pair Corralation between Greengro Tech and Lindsay
Given the investment horizon of 90 days Greengro Tech is expected to generate 45.62 times more return on investment than Lindsay. However, Greengro Tech is 45.62 times more volatile than Lindsay. It trades about 0.09 of its potential returns per unit of risk. Lindsay is currently generating about 0.0 per unit of risk. If you would invest 0.23 in Greengro Tech on November 2, 2024 and sell it today you would lose (0.23) from holding Greengro Tech or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Greengro Tech vs. Lindsay
Performance |
| Timeline |
| Greengro Tech |
| Lindsay |
Greengro Tech and Lindsay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greengro Tech and Lindsay
The main advantage of trading using opposite Greengro Tech and Lindsay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greengro Tech position performs unexpectedly, Lindsay 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 Lindsay will offset losses from the drop in Lindsay's long position.| Greengro Tech vs. Austin Engineering Limited | Greengro Tech vs. Grow Solutions Holdings | Greengro Tech vs. Buhler Industries | Greengro Tech vs. First Tractor |
| Lindsay vs. Columbus McKinnon | Lindsay vs. Astec Industries | Lindsay vs. Shyft Group | Lindsay vs. AGCO Corporation |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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