Correlation Between GreenBank Capital and Cal Bay

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

By analyzing existing cross correlation between GreenBank Capital and Cal Bay Intl, you can compare the effects of market volatilities on GreenBank Capital and Cal Bay 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 GreenBank Capital with a short position of Cal Bay. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenBank Capital and Cal Bay.

Diversification Opportunities for GreenBank Capital and Cal Bay

0.0

Correlation Coefficient

GreenBank Capital  Cal Bay

Pay attention - limited upside

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

Pair Corralation between GreenBank Capital and Cal Bay

If you would invest  0.45  in GreenBank Capital on May 5, 2025 and sell it today you would earn a total of  1.01  from holding GreenBank Capital or generate 224.44% return on investment over 90 days.

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

GreenBank Capital  vs.  Cal Bay Intl

GreenBank Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GreenBank Capital are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental drivers, GreenBank Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Cal Bay Intl

Risk-Adjusted Performance

Very Weak

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

Pair Trading with GreenBank Capital and Cal Bay

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

The idea behind GreenBank Capital and Cal Bay Intl 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.