Correlation Between Victory Square and GreenBank Capital
Can any of the company-specific risk be diversified away by investing in both Victory Square and GreenBank 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 Victory Square and GreenBank Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Square Technologies and GreenBank Capital, you can compare the effects of market volatilities on Victory Square and GreenBank 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 Victory Square with a short position of GreenBank Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Square and GreenBank Capital.
Diversification Opportunities for Victory Square and GreenBank Capital
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Victory and GreenBank is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Victory Square Technologies and GreenBank Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenBank Capital and Victory Square 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 Victory Square Technologies are associated (or correlated) with GreenBank Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenBank Capital has no effect on the direction of Victory Square i.e., Victory Square and GreenBank Capital go up and down completely randomly.
Pair Corralation between Victory Square and GreenBank Capital
Assuming the 90 days horizon Victory Square is expected to generate 53.06 times less return on investment than GreenBank Capital. But when comparing it to its historical volatility, Victory Square Technologies is 13.31 times less risky than GreenBank Capital. It trades about 0.03 of its potential returns per unit of risk. GreenBank Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 11.00 in GreenBank Capital on August 29, 2024 and sell it today you would lose (10.38) from holding GreenBank Capital or give up 94.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Square Technologies vs. GreenBank Capital
Performance |
| Timeline |
| Victory Square Techn |
| GreenBank Capital |
Victory Square and GreenBank Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Square and GreenBank Capital
The main advantage of trading using opposite Victory Square and GreenBank Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Square position performs unexpectedly, GreenBank 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 GreenBank Capital will offset losses from the drop in GreenBank Capital's long position.| Victory Square vs. GameSquare Holdings | Victory Square vs. Nexon Co Ltd | Victory Square vs. i3 Interactive | Victory Square vs. IGG Inc |
| GreenBank Capital vs. ESE Entertainment | GreenBank Capital vs. St Georges Eco Mining Corp | GreenBank Capital vs. Victory Square Technologies | GreenBank Capital vs. PowerBand Solutions |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |