Correlation Between IMedia Brands and Greenidge Generation

Can any of the company-specific risk be diversified away by investing in both IMedia Brands and Greenidge Generation 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 IMedia Brands and Greenidge Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IMedia Brands 85 and Greenidge Generation Holdings, you can compare the effects of market volatilities on IMedia Brands and Greenidge Generation 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 IMedia Brands with a short position of Greenidge Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMedia Brands and Greenidge Generation.

Diversification Opportunities for IMedia Brands and Greenidge Generation

-0.26

Correlation Coefficient

IMedia Brands  Greenidge Generation

Very good diversification

The 3 months correlation between IMedia and Greenidge is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding IMedia Brands 85 and Greenidge Generation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenidge Generation and IMedia Brands 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 IMedia Brands 85 are associated (or correlated) with Greenidge Generation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenidge Generation has no effect on the direction of IMedia Brands i.e., IMedia Brands and Greenidge Generation go up and down completely randomly.

Pair Corralation between IMedia Brands and Greenidge Generation

If you would invest  98.00  in IMedia Brands 85 on September 29, 2024 and sell it today you would earn a total of  0.00  from holding IMedia Brands 85 or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.79%
Values	Daily Returns

IMedia Brands 85  vs.  Greenidge Generation Holdings

IMedia Brands 85

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IMedia Brands 85 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward indicators, IMedia Brands is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Greenidge Generation

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Greenidge Generation Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal technical and fundamental indicators, Greenidge Generation disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IMedia Brands and Greenidge Generation

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

The idea behind IMedia Brands 85 and Greenidge Generation Holdings 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.