Correlation Between Greenwave Technology and Clean Harbors

Can any of the company-specific risk be diversified away by investing in both Greenwave Technology and Clean Harbors 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 Greenwave Technology and Clean Harbors into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Greenwave Technology Solutions and Clean Harbors, you can compare the effects of market volatilities on Greenwave Technology and Clean Harbors 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 Greenwave Technology with a short position of Clean Harbors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenwave Technology and Clean Harbors.

Diversification Opportunities for Greenwave Technology and Clean Harbors

-0.07

Correlation Coefficient

Greenwave Technology  Clean Harbors

Good diversification

The 3 months correlation between Greenwave and Clean is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Greenwave Technology Solutions and Clean Harbors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Harbors and Greenwave Technology 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 Greenwave Technology Solutions are associated (or correlated) with Clean Harbors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Harbors has no effect on the direction of Greenwave Technology i.e., Greenwave Technology and Clean Harbors go up and down completely randomly.

Pair Corralation between Greenwave Technology and Clean Harbors

Given the investment horizon of 90 days Greenwave Technology Solutions is expected to generate 5.35 times more return on investment than Clean Harbors. However, Greenwave Technology is 5.35 times more volatile than Clean Harbors. It trades about 0.12 of its potential returns per unit of risk. Clean Harbors is currently generating about 0.02 per unit of risk. If you would invest  42.00  in Greenwave Technology Solutions on September 12, 2024 and sell it today you would earn a total of  31.00  from holding Greenwave Technology Solutions or generate 73.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Greenwave Technology Solutions  vs.  Clean Harbors

Greenwave Technology

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Greenwave Technology Solutions are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Greenwave Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Clean Harbors

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Clean Harbors are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong essential indicators, Clean Harbors is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Greenwave Technology and Clean Harbors

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

The idea behind Greenwave Technology Solutions and Clean Harbors 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.