Correlation Between Green Planet and Armada Acquisition

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

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

Diversification Opportunities for Green Planet and Armada Acquisition

0.0

Correlation Coefficient

Green Planet  Armada Acquisition

Pay attention - limited upside

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

Pair Corralation between Green Planet and Armada Acquisition

If you would invest  54.00  in Green Planet Bio on December 25, 2024 and sell it today you would lose (3.00) from holding Green Planet Bio or give up 5.56% of portfolio value over 90 days.

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

Green Planet Bio  vs.  Armada Acquisition Corp

Green Planet Bio

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Green Planet Bio are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting essential indicators, Green Planet sustained solid returns over the last few months and may actually be approaching a breakup point.

Armada Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Armada Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Armada Acquisition is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Green Planet and Armada Acquisition

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

The idea behind Green Planet Bio and Armada 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.