Correlation Between Greenidge Generation and Stark Focus

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

By analyzing existing cross correlation between Greenidge Generation Holdings and Stark Focus Group, you can compare the effects of market volatilities on Greenidge Generation and Stark Focus 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 Greenidge Generation with a short position of Stark Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenidge Generation and Stark Focus.

Diversification Opportunities for Greenidge Generation and Stark Focus

-0.49

Correlation Coefficient

Greenidge Generation  Stark Focus

Very good diversification

The 3 months correlation between Greenidge and Stark is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Greenidge Generation Holdings and Stark Focus Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stark Focus Group and Greenidge Generation 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 Greenidge Generation Holdings are associated (or correlated) with Stark Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stark Focus Group has no effect on the direction of Greenidge Generation i.e., Greenidge Generation and Stark Focus go up and down completely randomly.

Pair Corralation between Greenidge Generation and Stark Focus

Assuming the 90 days horizon Greenidge Generation Holdings is expected to under-perform the Stark Focus. But the stock apears to be less risky and, when comparing its historical volatility, Greenidge Generation Holdings is 5.02 times less risky than Stark Focus. The stock trades about -0.12 of its potential returns per unit of risk. The Stark Focus Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  4.65  in Stark Focus Group on December 29, 2024 and sell it today you would earn a total of  0.90  from holding Stark Focus Group or generate 19.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

Greenidge Generation Holdings  vs.  Stark Focus Group

Greenidge Generation

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greenidge Generation Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Stark Focus Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Stark Focus Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, Stark Focus reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Greenidge Generation and Stark Focus

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

The idea behind Greenidge Generation Holdings and Stark Focus Group 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.