Correlation Between Berkshire Grey and Greenland Acquisition

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

By analyzing existing cross correlation between Berkshire Grey and Greenland Acquisition Corp, you can compare the effects of market volatilities on Berkshire Grey and Greenland Acquisition 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 Berkshire Grey with a short position of Greenland Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkshire Grey and Greenland Acquisition.

Diversification Opportunities for Berkshire Grey and Greenland Acquisition

-0.24

Correlation Coefficient

Berkshire Grey  Greenland Acquisition

Very good diversification

The 3 months correlation between Berkshire and Greenland is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Berkshire Grey and Greenland Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Acquisition and Berkshire Grey 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 Berkshire Grey are associated (or correlated) with Greenland Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Acquisition has no effect on the direction of Berkshire Grey i.e., Berkshire Grey and Greenland Acquisition go up and down completely randomly.

Pair Corralation between Berkshire Grey and Greenland Acquisition

If you would invest  140.00  in Berkshire Grey on September 27, 2024 and sell it today you would earn a total of  0.00  from holding Berkshire Grey or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Berkshire Grey  vs.  Greenland Acquisition Corp

Berkshire Grey

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Berkshire Grey has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Berkshire Grey is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Greenland Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greenland Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Berkshire Grey and Greenland Acquisition

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

The idea behind Berkshire Grey and Greenland Acquisition Corp 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.