Correlation Between Lifeline Biotechnologies and American Green
Can any of the company-specific risk be diversified away by investing in both Lifeline Biotechnologies and American Green 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 Lifeline Biotechnologies and American Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifeline Biotechnologies and American Green Group, you can compare the effects of market volatilities on Lifeline Biotechnologies and American Green 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 Lifeline Biotechnologies with a short position of American Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifeline Biotechnologies and American Green.
Diversification Opportunities for Lifeline Biotechnologies and American Green
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lifeline and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lifeline Biotechnologies and American Green Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Green Group and Lifeline Biotechnologies 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 Lifeline Biotechnologies are associated (or correlated) with American Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Green Group has no effect on the direction of Lifeline Biotechnologies i.e., Lifeline Biotechnologies and American Green go up and down completely randomly.
Pair Corralation between Lifeline Biotechnologies and American Green
If you would invest 0.00 in Lifeline Biotechnologies on October 12, 2024 and sell it today you would earn a total of 0.02 from holding Lifeline Biotechnologies or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.14% |
| Values | Daily Returns |
Lifeline Biotechnologies vs. American Green Group
Performance |
| Timeline |
| Lifeline Biotechnologies |
| American Green Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lifeline Biotechnologies and American Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifeline Biotechnologies and American Green
The main advantage of trading using opposite Lifeline Biotechnologies and American Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifeline Biotechnologies position performs unexpectedly, American Green 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 American Green will offset losses from the drop in American Green's long position.| Lifeline Biotechnologies vs. Modular Medical | Lifeline Biotechnologies vs. Neuropace | Lifeline Biotechnologies vs. Nexalin Technology | Lifeline Biotechnologies vs. STRATA Skin Sciences |
| American Green vs. Hard to Treat | American Green vs. Pharmacom Biovet | American Green vs. Ingen Technologies | American Green vs. Aquagold International |
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.
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