Correlation Between GreenPro Capital and Resources Connection
Can any of the company-specific risk be diversified away by investing in both GreenPro Capital and Resources Connection 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 GreenPro Capital and Resources Connection into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenPro Capital Corp and Resources Connection, you can compare the effects of market volatilities on GreenPro Capital and Resources Connection 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 GreenPro Capital with a short position of Resources Connection. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenPro Capital and Resources Connection.
Diversification Opportunities for GreenPro Capital and Resources Connection
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GreenPro and Resources is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding GreenPro Capital Corp and Resources Connection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resources Connection and GreenPro 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 GreenPro Capital Corp are associated (or correlated) with Resources Connection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resources Connection has no effect on the direction of GreenPro Capital i.e., GreenPro Capital and Resources Connection go up and down completely randomly.
Pair Corralation between GreenPro Capital and Resources Connection
Given the investment horizon of 90 days GreenPro Capital Corp is expected to generate 1.14 times more return on investment than Resources Connection. However, GreenPro Capital is 1.14 times more volatile than Resources Connection. It trades about 0.26 of its potential returns per unit of risk. Resources Connection is currently generating about 0.09 per unit of risk. If you would invest 104.00 in GreenPro Capital Corp on October 9, 2024 and sell it today you would earn a total of 13.00 from holding GreenPro Capital Corp or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenPro Capital Corp vs. Resources Connection
Performance |
| Timeline |
| GreenPro Capital Corp |
| Resources Connection |
GreenPro Capital and Resources Connection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenPro Capital and Resources Connection
The main advantage of trading using opposite GreenPro Capital and Resources Connection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenPro Capital position performs unexpectedly, Resources Connection 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 Resources Connection will offset losses from the drop in Resources Connection's long position.| GreenPro Capital vs. Resources Connection | GreenPro Capital vs. Huron Consulting Group | GreenPro Capital vs. Equifax | GreenPro Capital vs. Booz Allen Hamilton |
| Resources Connection vs. CRA International | Resources Connection vs. Huron Consulting Group | Resources Connection vs. Forrester Research | Resources Connection vs. Exponent |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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