Correlation Between Greenlane Renewables and Fobi AI

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Can any of the company-specific risk be diversified away by investing in both Greenlane Renewables and Fobi AI 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 Fobi AI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Renewables and Fobi AI, you can compare the effects of market volatilities on Greenlane Renewables and Fobi AI 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 Fobi AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Renewables and Fobi AI.

Diversification Opportunities for Greenlane Renewables and Fobi AI

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Greenlane and Fobi is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Renewables and Fobi AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fobi AI 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 Fobi AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fobi AI has no effect on the direction of Greenlane Renewables i.e., Greenlane Renewables and Fobi AI go up and down completely randomly.

Pair Corralation between Greenlane Renewables and Fobi AI

If you would invest  8.50  in Greenlane Renewables on September 10, 2024 and sell it today you would earn a total of  0.50  from holding Greenlane Renewables or generate 5.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Greenlane Renewables  vs.  Fobi AI

 Performance 
       Timeline  
Greenlane Renewables 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Greenlane Renewables are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Greenlane Renewables displayed solid returns over the last few months and may actually be approaching a breakup point.
Fobi AI 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Fobi AI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Greenlane Renewables and Fobi AI Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Greenlane Renewables and Fobi AI

The main advantage of trading using opposite Greenlane Renewables and Fobi AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Renewables position performs unexpectedly, Fobi AI 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 Fobi AI will offset losses from the drop in Fobi AI's long position.
The idea behind Greenlane Renewables and Fobi AI 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.
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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