Correlation Between Greentown Management and Proficient Auto

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

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

Diversification Opportunities for Greentown Management and Proficient Auto

0.09

Correlation Coefficient

Greentown Management  Proficient Auto

Significant diversification

The 3 months correlation between Greentown and Proficient is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Greentown Management Holdings and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi and Greentown Management 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 Greentown Management Holdings are associated (or correlated) with Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Greentown Management i.e., Greentown Management and Proficient Auto go up and down completely randomly.

Pair Corralation between Greentown Management and Proficient Auto

Assuming the 90 days horizon Greentown Management is expected to generate 2.19 times less return on investment than Proficient Auto. But when comparing it to its historical volatility, Greentown Management Holdings is 5.93 times less risky than Proficient Auto. It trades about 0.12 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  774.00  in Proficient Auto Logistics, on May 27, 2025 and sell it today you would earn a total of  58.00  from holding Proficient Auto Logistics, or generate 7.49% return on investment over 90 days.

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

Greentown Management Holdings  vs.  Proficient Auto Logistics,

Greentown Management

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Greentown Management Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical indicators, Greentown Management is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Proficient Auto Logi

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Proficient Auto Logistics, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Proficient Auto disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Greentown Management and Proficient Auto

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

The idea behind Greentown Management Holdings and Proficient Auto 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.