Correlation Between Itron and Greene Concepts
Can any of the company-specific risk be diversified away by investing in both Itron and Greene Concepts 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 Itron and Greene Concepts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itron Inc and Greene Concepts, you can compare the effects of market volatilities on Itron and Greene Concepts 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 Itron with a short position of Greene Concepts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itron and Greene Concepts.
Diversification Opportunities for Itron and Greene Concepts
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Itron and Greene is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Itron Inc and Greene Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greene Concepts and Itron 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 Itron Inc are associated (or correlated) with Greene Concepts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greene Concepts has no effect on the direction of Itron i.e., Itron and Greene Concepts go up and down completely randomly.
Pair Corralation between Itron and Greene Concepts
Given the investment horizon of 90 days Itron Inc is expected to generate 0.26 times more return on investment than Greene Concepts. However, Itron Inc is 3.91 times less risky than Greene Concepts. It trades about 0.07 of its potential returns per unit of risk. Greene Concepts is currently generating about -0.01 per unit of risk. If you would invest 7,266 in Itron Inc on August 31, 2024 and sell it today you would earn a total of 4,587 from holding Itron Inc or generate 63.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Itron Inc vs. Greene Concepts
Performance |
| Timeline |
| Itron Inc |
| Greene Concepts |
Itron and Greene Concepts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Itron and Greene Concepts
The main advantage of trading using opposite Itron and Greene Concepts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itron position performs unexpectedly, Greene Concepts 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 Greene Concepts will offset losses from the drop in Greene Concepts' long position.The idea behind Itron Inc and Greene Concepts 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.| Greene Concepts vs. High Performance Beverages | Greene Concepts vs. V Group | Greene Concepts vs. Fbec Worldwide | Greene Concepts vs. Hiru 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world |