Correlation Between Pinterest and Greatcell Solar

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

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

Diversification Opportunities for Pinterest and Greatcell Solar

0.0

Correlation Coefficient

Pinterest  Greatcell Solar

Pay attention - limited upside

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

Pair Corralation between Pinterest and Greatcell Solar

If you would invest  3,467  in Pinterest on February 4, 2024 and sell it today you would earn a total of  574.00  from holding Pinterest or generate 16.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Pinterest  vs.  Greatcell Solar Limited

Pinterest

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pinterest are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Pinterest is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Greatcell Solar

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Pinterest and Greatcell Solar

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

The idea behind Pinterest and Greatcell Solar Limited 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.

Check out your portfolio center.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.