Correlation Between Greenlane Renewables and Fobi AI
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
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenlane and Fobi is -0.41. 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
Assuming the 90 days trading horizon Greenlane Renewables is expected to under-perform the Fobi AI. But the stock apears to be less risky and, when comparing its historical volatility, Greenlane Renewables is 1.12 times less risky than Fobi AI. The stock trades about -0.03 of its potential returns per unit of risk. The Fobi AI is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Fobi AI on September 7, 2024 and sell it today you would lose (17.00) from holding Fobi AI or give up 80.95% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Greenlane Renewables vs. Fobi AI
Performance |
Timeline |
Greenlane Renewables |
Fobi AI |
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.Greenlane Renewables vs. Solar Alliance Energy | Greenlane Renewables vs. Converge Technology Solutions | Greenlane Renewables vs. WELL Health Technologies |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |