Correlation Between Anaergia and Green Impact

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

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

Diversification Opportunities for Anaergia and Green Impact

-0.38

Correlation Coefficient

Anaergia  Green Impact

Very good diversification

The 3 months correlation between Anaergia and Green is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Anaergia and Green Impact Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Impact Partners and Anaergia 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 Anaergia are associated (or correlated) with Green Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Impact Partners has no effect on the direction of Anaergia i.e., Anaergia and Green Impact go up and down completely randomly.

Pair Corralation between Anaergia and Green Impact

Assuming the 90 days trading horizon Anaergia is expected to generate 3.31 times less return on investment than Green Impact. In addition to that, Anaergia is 1.24 times more volatile than Green Impact Partners. It trades about 0.05 of its total potential returns per unit of risk. Green Impact Partners is currently generating about 0.19 per unit of volatility. If you would invest  340.00  in Green Impact Partners on December 30, 2024 and sell it today you would earn a total of  170.00  from holding Green Impact Partners or generate 50.0% return on investment over 90 days.

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

Anaergia  vs.  Green Impact Partners

Anaergia

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anaergia are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Anaergia displayed solid returns over the last few months and may actually be approaching a breakup point.

Green Impact Partners

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Green Impact Partners are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Green Impact showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anaergia and Green Impact

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

The idea behind Anaergia and Green Impact Partners 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.