Correlation Between Greystone Logistics and Daqo New
Can any of the company-specific risk be diversified away by investing in both Greystone Logistics and Daqo New 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 Daqo New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greystone Logistics and Daqo New Energy, you can compare the effects of market volatilities on Greystone Logistics and Daqo New 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 Daqo New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greystone Logistics and Daqo New.
Diversification Opportunities for Greystone Logistics and Daqo New
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greystone and Daqo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Greystone Logistics and Daqo New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daqo New Energy 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 Daqo New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daqo New Energy has no effect on the direction of Greystone Logistics i.e., Greystone Logistics and Daqo New go up and down completely randomly.
Pair Corralation between Greystone Logistics and Daqo New
Given the investment horizon of 90 days Greystone Logistics is expected to generate 1.08 times more return on investment than Daqo New. However, Greystone Logistics is 1.08 times more volatile than Daqo New Energy. It trades about -0.16 of its potential returns per unit of risk. Daqo New Energy is currently generating about -0.37 per unit of risk. If you would invest 132.00 in Greystone Logistics on February 4, 2024 and sell it today you would lose (22.00) from holding Greystone Logistics or give up 16.67% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Greystone Logistics vs. Daqo New Energy
Performance |
Timeline |
Greystone Logistics |
Daqo New Energy |
Greystone Logistics and Daqo New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Greystone Logistics and Daqo New
The main advantage of trading using opposite Greystone Logistics and Daqo New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greystone Logistics position performs unexpectedly, Daqo New 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 Daqo New will offset losses from the drop in Daqo New's long position.Greystone Logistics vs. Kodiak Copper Corp | Greystone Logistics vs. Endeavour Silver Corp | Greystone Logistics vs. McEwen Mining | Greystone Logistics vs. SilverCrest Metals |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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