Correlation Between Proto Script and Growlife

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

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

Diversification Opportunities for Proto Script and Growlife

-0.21

Correlation Coefficient

Proto Script  Growlife

Very good diversification

The 3 months correlation between Proto and Growlife is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Proto Script Pharmaceutical and Growlife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growlife and Proto Script 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 Proto Script Pharmaceutical are associated (or correlated) with Growlife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growlife has no effect on the direction of Proto Script i.e., Proto Script and Growlife go up and down completely randomly.

Pair Corralation between Proto Script and Growlife

Given the investment horizon of 90 days Proto Script Pharmaceutical is expected to under-perform the Growlife. But the pink sheet apears to be less risky and, when comparing its historical volatility, Proto Script Pharmaceutical is 4.07 times less risky than Growlife. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Growlife is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Growlife on September 13, 2025 and sell it today you would earn a total of  0.00  from holding Growlife or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Proto Script Pharmaceutical  vs.  Growlife

Proto Script Pharmac

Risk-Adjusted Performance

Weakest

Over the last 90 days Proto Script Pharmaceutical has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Growlife

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Growlife are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Growlife unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Proto Script and Growlife

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

The idea behind Proto Script Pharmaceutical and Growlife 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.