Correlation Between Greene Concepts and Mitesco

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

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

Diversification Opportunities for Greene Concepts and Mitesco

0.04

Correlation Coefficient

Greene Concepts  Mitesco

Significant diversification

The 3 months correlation between Greene and Mitesco is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Greene Concepts and Mitesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitesco 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 Mitesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitesco has no effect on the direction of Greene Concepts i.e., Greene Concepts and Mitesco go up and down completely randomly.

Pair Corralation between Greene Concepts and Mitesco

Given the investment horizon of 90 days Greene Concepts is expected to under-perform the Mitesco. But the pink sheet apears to be less risky and, when comparing its historical volatility, Greene Concepts is 5.48 times less risky than Mitesco. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Mitesco is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  28.00  in Mitesco on September 11, 2024 and sell it today you would lose (1.00) from holding Mitesco or give up 3.57% of portfolio value over 90 days.

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

Greene Concepts  vs.  Mitesco

Greene Concepts

Risk-Adjusted Performance

0 of 100

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.

Mitesco

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mitesco are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Mitesco demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Greene Concepts and Mitesco

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

The idea behind Greene Concepts and Mitesco 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.