Correlation Between Koss and Greenwich Lifesciences

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

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

Diversification Opportunities for Koss and Greenwich Lifesciences

0.25

Correlation Coefficient

Koss  Greenwich Lifesciences

Modest diversification

The 3 months correlation between Koss and Greenwich is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Koss Corp. and Greenwich Lifesciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenwich Lifesciences and Koss 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 Koss Corporation are associated (or correlated) with Greenwich Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenwich Lifesciences has no effect on the direction of Koss i.e., Koss and Greenwich Lifesciences go up and down completely randomly.

Pair Corralation between Koss and Greenwich Lifesciences

Given the investment horizon of 90 days Koss Corporation is expected to generate 1.31 times more return on investment than Greenwich Lifesciences. However, Koss is 1.31 times more volatile than Greenwich Lifesciences. It trades about 0.13 of its potential returns per unit of risk. Greenwich Lifesciences is currently generating about 0.08 per unit of risk. If you would invest  463.00  in Koss Corporation on April 25, 2025 and sell it today you would earn a total of  164.00  from holding Koss Corporation or generate 35.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Koss Corp.  vs.  Greenwich Lifesciences

Koss

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Koss Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Koss unveiled solid returns over the last few months and may actually be approaching a breakup point.

Greenwich Lifesciences

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Greenwich Lifesciences are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Greenwich Lifesciences demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Koss and Greenwich Lifesciences

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

The idea behind Koss Corporation and Greenwich Lifesciences 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.