Correlation Between Greenland Acquisition and Xinjiang Goldwind
Can any of the company-specific risk be diversified away by investing in both Greenland Acquisition and Xinjiang Goldwind 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 Greenland Acquisition and Xinjiang Goldwind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenland Acquisition Corp and Xinjiang Goldwind Science, you can compare the effects of market volatilities on Greenland Acquisition and Xinjiang Goldwind 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 Greenland Acquisition with a short position of Xinjiang Goldwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Acquisition and Xinjiang Goldwind.
Diversification Opportunities for Greenland Acquisition and Xinjiang Goldwind
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greenland and Xinjiang is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Acquisition Corp and Xinjiang Goldwind Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Goldwind Science and Greenland Acquisition 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 Greenland Acquisition Corp are associated (or correlated) with Xinjiang Goldwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Goldwind Science has no effect on the direction of Greenland Acquisition i.e., Greenland Acquisition and Xinjiang Goldwind go up and down completely randomly.
Pair Corralation between Greenland Acquisition and Xinjiang Goldwind
Given the investment horizon of 90 days Greenland Acquisition Corp is expected to under-perform the Xinjiang Goldwind. But the stock apears to be less risky and, when comparing its historical volatility, Greenland Acquisition Corp is 1.64 times less risky than Xinjiang Goldwind. The stock trades about -0.11 of its potential returns per unit of risk. The Xinjiang Goldwind Science is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 80.00 in Xinjiang Goldwind Science on September 26, 2024 and sell it today you would earn a total of 8.00 from holding Xinjiang Goldwind Science or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Greenland Acquisition Corp vs. Xinjiang Goldwind Science
Performance |
Timeline |
Greenland Acquisition |
Xinjiang Goldwind Science |
Greenland Acquisition and Xinjiang Goldwind Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Greenland Acquisition and Xinjiang Goldwind
The main advantage of trading using opposite Greenland Acquisition and Xinjiang Goldwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Acquisition position performs unexpectedly, Xinjiang Goldwind 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 Xinjiang Goldwind will offset losses from the drop in Xinjiang Goldwind's long position.Greenland Acquisition vs. Shapeways Holdings, Common | Greenland Acquisition vs. JE Cleantech Holdings | Greenland Acquisition vs. Laser Photonics | Greenland Acquisition vs. Siemens AG Class |
Xinjiang Goldwind vs. Shapeways Holdings, Common | Xinjiang Goldwind vs. JE Cleantech Holdings | Xinjiang Goldwind vs. Greenland Acquisition Corp | Xinjiang Goldwind vs. Laser Photonics |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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