Correlation Between Greene Concepts and Alkame Holdings

Can any of the company-specific risk be diversified away by investing in both Greene Concepts and Alkame Holdings 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 Greene Concepts and Alkame Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Greene Concepts and Alkame Holdings

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Correlation Coefficient

Greene Concepts  Alkame Holdings

Pay attention - limited upside

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

Pair Corralation between Greene Concepts and Alkame Holdings

Given the investment horizon of 90 days Greene Concepts is expected to generate 0.38 times more return on investment than Alkame Holdings. However, Greene Concepts is 2.6 times less risky than Alkame Holdings. It trades about -0.23 of its potential returns per unit of risk. Alkame Holdings is currently generating about -0.16 per unit of risk. If you would invest  0.21  in Greene Concepts on September 4, 2024 and sell it today you would lose (0.10) from holding Greene Concepts or give up 47.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.62%
Values	Daily Returns

Greene Concepts  vs.  Alkame Holdings

Greene Concepts

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Greene Concepts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Alkame Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alkame Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward-looking signals remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Greene Concepts and Alkame Holdings

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

The idea behind Greene Concepts and Alkame Holdings 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.