Correlation Between Ballard Power and Greenland Technologies

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

By analyzing existing cross correlation between Ballard Power Systems and Greenland Technologies Holding, you can compare the effects of market volatilities on Ballard Power and Greenland Technologies 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 Ballard Power with a short position of Greenland Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballard Power and Greenland Technologies.

Diversification Opportunities for Ballard Power and Greenland Technologies

0.0

Correlation Coefficient

Ballard Power  Greenland Technologies

Pay attention - limited upside

The 3 months correlation between Ballard and Greenland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ballard Power Systems and Greenland Technologies Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Technologies and Ballard Power 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 Ballard Power Systems are associated (or correlated) with Greenland Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Technologies has no effect on the direction of Ballard Power i.e., Ballard Power and Greenland Technologies go up and down completely randomly.

Pair Corralation between Ballard Power and Greenland Technologies

If you would invest (100.00) in Greenland Technologies Holding on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Greenland Technologies Holding or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ballard Power Systems  vs.  Greenland Technologies Holding

Ballard Power Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ballard Power Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Greenland Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greenland Technologies Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Greenland Technologies is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Ballard Power and Greenland Technologies

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

The idea behind Ballard Power Systems and Greenland Technologies Holding 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.