Correlation Between Rosinbomb and Greenshift Corp

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

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

Diversification Opportunities for Rosinbomb and Greenshift Corp

0.14

Correlation Coefficient

Rosinbomb  Greenshift Corp

Average diversification

The 3 months correlation between Rosinbomb and Greenshift is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Rosinbomb and Greenshift Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenshift Corp and Rosinbomb 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 Rosinbomb are associated (or correlated) with Greenshift Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenshift Corp has no effect on the direction of Rosinbomb i.e., Rosinbomb and Greenshift Corp go up and down completely randomly.

Pair Corralation between Rosinbomb and Greenshift Corp

Given the investment horizon of 90 days Rosinbomb is expected to generate 1.84 times less return on investment than Greenshift Corp. In addition to that, Rosinbomb is 1.38 times more volatile than Greenshift Corp. It trades about 0.0 of its total potential returns per unit of risk. Greenshift Corp is currently generating about 0.0 per unit of volatility. If you would invest  3.89  in Greenshift Corp on September 12, 2024 and sell it today you would lose (1.24) from holding Greenshift Corp or give up 31.88% of portfolio value over 90 days.

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

Rosinbomb  vs.  Greenshift Corp

Rosinbomb

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Rosinbomb has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Rosinbomb is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Greenshift Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greenshift Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Greenshift Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Rosinbomb and Greenshift Corp

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

The idea behind Rosinbomb and Greenshift 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.