Correlation Between Easton Pharmaceutica and Greengro Tech

Can any of the company-specific risk be diversified away by investing in both Easton Pharmaceutica and Greengro Tech 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 Easton Pharmaceutica and Greengro Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Easton Pharmaceutica and Greengro Tech, you can compare the effects of market volatilities on Easton Pharmaceutica and Greengro Tech 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 Easton Pharmaceutica with a short position of Greengro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easton Pharmaceutica and Greengro Tech.

Diversification Opportunities for Easton Pharmaceutica and Greengro Tech

0.0

Correlation Coefficient

Easton Pharmaceutica  Greengro Tech

Pay attention - limited upside

The 3 months correlation between Easton and Greengro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Easton Pharmaceutica and Greengro Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greengro Tech and Easton Pharmaceutica 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 Easton Pharmaceutica are associated (or correlated) with Greengro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greengro Tech has no effect on the direction of Easton Pharmaceutica i.e., Easton Pharmaceutica and Greengro Tech go up and down completely randomly.

Pair Corralation between Easton Pharmaceutica and Greengro Tech

If you would invest  0.00  in Greengro Tech on September 25, 2024 and sell it today you would earn a total of  0.00  from holding Greengro Tech or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Easton Pharmaceutica  vs.  Greengro Tech

Easton Pharmaceutica

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Easton Pharmaceutica has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Easton Pharmaceutica is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Greengro Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greengro Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Greengro Tech is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Easton Pharmaceutica and Greengro Tech

The main advantage of trading using opposite Easton Pharmaceutica and Greengro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easton Pharmaceutica position performs unexpectedly, Greengro Tech 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 Greengro Tech will offset losses from the drop in Greengro Tech's long position.

The idea behind Easton Pharmaceutica and Greengro Tech 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.