Correlation Between Grey Cloak and Telo Genomics

Can any of the company-specific risk be diversified away by investing in both Grey Cloak and Telo Genomics 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 Grey Cloak and Telo Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Grey Cloak and Telo Genomics

0.43

Correlation Coefficient

Grey Cloak  Telo Genomics

Very weak diversification

The 3 months correlation between Grey and Telo is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Grey Cloak Tech and Telo Genomics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telo Genomics Corp and Grey Cloak 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 Grey Cloak Tech are associated (or correlated) with Telo Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telo Genomics Corp has no effect on the direction of Grey Cloak i.e., Grey Cloak and Telo Genomics go up and down completely randomly.

Pair Corralation between Grey Cloak and Telo Genomics

Given the investment horizon of 90 days Grey Cloak Tech is expected to generate 0.93 times more return on investment than Telo Genomics. However, Grey Cloak Tech is 1.07 times less risky than Telo Genomics. It trades about 0.07 of its potential returns per unit of risk. Telo Genomics Corp is currently generating about 0.02 per unit of risk. If you would invest  250.00  in Grey Cloak Tech on September 19, 2024 and sell it today you would earn a total of  75.00  from holding Grey Cloak Tech or generate 30.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Grey Cloak Tech  vs.  Telo Genomics Corp

Grey Cloak Tech

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Grey Cloak Tech are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Grey Cloak showed solid returns over the last few months and may actually be approaching a breakup point.

Telo Genomics Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Telo Genomics Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Telo Genomics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grey Cloak and Telo Genomics

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

The idea behind Grey Cloak Tech and Telo Genomics Corp 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.