Correlation Between Greenlane Renewables and Exro Technologies
Can any of the company-specific risk be diversified away by investing in both Greenlane Renewables and Exro 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 Greenlane Renewables and Exro Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Renewables and Exro Technologies, you can compare the effects of market volatilities on Greenlane Renewables and Exro 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 Greenlane Renewables with a short position of Exro Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Renewables and Exro Technologies.
Diversification Opportunities for Greenlane Renewables and Exro Technologies
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenlane and Exro is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Renewables and Exro Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exro Technologies and Greenlane Renewables 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 Greenlane Renewables are associated (or correlated) with Exro Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exro Technologies has no effect on the direction of Greenlane Renewables i.e., Greenlane Renewables and Exro Technologies go up and down completely randomly.
Pair Corralation between Greenlane Renewables and Exro Technologies
Assuming the 90 days trading horizon Greenlane Renewables is expected to generate 0.82 times more return on investment than Exro Technologies. However, Greenlane Renewables is 1.22 times less risky than Exro Technologies. It trades about -0.04 of its potential returns per unit of risk. Exro Technologies is currently generating about -0.1 per unit of risk. If you would invest 11.00 in Greenlane Renewables on December 2, 2024 and sell it today you would lose (2.00) from holding Greenlane Renewables or give up 18.18% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Greenlane Renewables vs. Exro Technologies
Performance |
Timeline |
Greenlane Renewables |
Exro Technologies |
Greenlane Renewables and Exro Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Greenlane Renewables and Exro Technologies
The main advantage of trading using opposite Greenlane Renewables and Exro Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Renewables position performs unexpectedly, Exro 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 Exro Technologies will offset losses from the drop in Exro Technologies' long position.Greenlane Renewables vs. Solar Alliance Energy | Greenlane Renewables vs. Converge Technology Solutions | Greenlane Renewables vs. WELL Health Technologies |
Exro Technologies vs. Nano One Materials | Exro Technologies vs. Greenlane Renewables | Exro Technologies vs. PyroGenesis Canada | Exro Technologies vs. Vicinity Motor Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Equity Valuation Check real value of public entities based on technical and fundamental data |