Correlation Between Greenland Technologies and ITM Power

Can any of the company-specific risk be diversified away by investing in both Greenland Technologies and ITM Power 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 Technologies and ITM Power into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Greenland Technologies Holding and ITM Power Plc, you can compare the effects of market volatilities on Greenland Technologies and ITM Power 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 Technologies with a short position of ITM Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Technologies and ITM Power.

Diversification Opportunities for Greenland Technologies and ITM Power

0.0

Correlation Coefficient

Greenland Technologies  ITM Power

Pay attention - limited upside

The 3 months correlation between Greenland and ITM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Technologies Holding and ITM Power Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITM Power Plc and Greenland Technologies 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 Technologies Holding are associated (or correlated) with ITM Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITM Power Plc has no effect on the direction of Greenland Technologies i.e., Greenland Technologies and ITM Power go up and down completely randomly.

Pair Corralation between Greenland Technologies and ITM Power

If you would invest (100.00) in Greenland Technologies Holding on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Greenland Technologies Holding or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Greenland Technologies Holding  vs.  ITM Power Plc

Greenland Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greenland Technologies Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Greenland Technologies is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

ITM Power Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ITM Power Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Greenland Technologies and ITM Power

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

The idea behind Greenland Technologies Holding and ITM Power Plc 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.