Correlation Between Table Trac and Greystone Logistics

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

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

Diversification Opportunities for Table Trac and Greystone Logistics

-0.29

Correlation Coefficient

Table Trac  Greystone Logistics

Very good diversification

The 3 months correlation between Table and Greystone is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Table Trac and Greystone Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greystone Logistics and Table Trac 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 Table Trac are associated (or correlated) with Greystone Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greystone Logistics has no effect on the direction of Table Trac i.e., Table Trac and Greystone Logistics go up and down completely randomly.

Pair Corralation between Table Trac and Greystone Logistics

Given the investment horizon of 90 days Table Trac is expected to generate 1.04 times less return on investment than Greystone Logistics. But when comparing it to its historical volatility, Table Trac is 1.02 times less risky than Greystone Logistics. It trades about 0.02 of its potential returns per unit of risk. Greystone Logistics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  95.00  in Greystone Logistics on September 17, 2024 and sell it today you would earn a total of  5.00  from holding Greystone Logistics or generate 5.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.17%
Values	Daily Returns

Table Trac  vs.  Greystone Logistics

Table Trac

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Table Trac are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Table Trac is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Greystone Logistics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greystone Logistics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Table Trac and Greystone Logistics

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

The idea behind Table Trac and Greystone Logistics 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.