Correlation Between Greystone Logistics and American Video

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

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

Diversification Opportunities for Greystone Logistics and American Video

0.0

Correlation Coefficient

Greystone Logistics  American Video

Pay attention - limited upside

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

Pair Corralation between Greystone Logistics and American Video

Given the investment horizon of 90 days Greystone Logistics is expected to generate 1.72 times more return on investment than American Video. However, Greystone Logistics is 1.72 times more volatile than American Video Teleconferencing. It trades about 0.04 of its potential returns per unit of risk. American Video Teleconferencing is currently generating about -0.04 per unit of risk. If you would invest  74.00  in Greystone Logistics on March 8, 2024 and sell it today you would earn a total of  47.00  from holding Greystone Logistics or generate 63.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Greystone Logistics  vs.  American Video Teleconferencin

Greystone Logistics

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Greystone Logistics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Greystone Logistics is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

American Video Telec

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Greystone Logistics and American Video

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

The idea behind Greystone Logistics and American Video Teleconferencing 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.