Correlation Between Green Landscaping and Acconeer

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

By analyzing existing cross correlation between Green Landscaping Group and Acconeer AB, you can compare the effects of market volatilities on Green Landscaping and Acconeer 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 Green Landscaping with a short position of Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Landscaping and Acconeer.

Diversification Opportunities for Green Landscaping and Acconeer

0.67

Correlation Coefficient

Green Landscaping  Acconeer

Poor diversification

The 3 months correlation between Green and Acconeer is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Green Landscaping Group and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and Green Landscaping 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 Green Landscaping Group are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of Green Landscaping i.e., Green Landscaping and Acconeer go up and down completely randomly.

Pair Corralation between Green Landscaping and Acconeer

Assuming the 90 days trading horizon Green Landscaping Group is expected to generate 0.76 times more return on investment than Acconeer. However, Green Landscaping Group is 1.32 times less risky than Acconeer. It trades about 0.0 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.01 per unit of risk. If you would invest  6,030  in Green Landscaping Group on April 25, 2025 and sell it today you would lose (70.00) from holding Green Landscaping Group or give up 1.16% of portfolio value over 90 days.

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

Green Landscaping Group  vs.  Acconeer AB

Green Landscaping

Risk-Adjusted Performance

Very Weak

Over the last 90 days Green Landscaping Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Green Landscaping is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Acconeer AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Acconeer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Acconeer is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Green Landscaping and Acconeer

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

The idea behind Green Landscaping Group and Acconeer AB 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.