Correlation Between Cannae Holdings and Greencity Acquisition
Can any of the company-specific risk be diversified away by investing in both Cannae Holdings and Greencity Acquisition 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 Cannae Holdings and Greencity Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannae Holdings and Greencity Acquisition Corp, you can compare the effects of market volatilities on Cannae Holdings and Greencity Acquisition 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 Cannae Holdings with a short position of Greencity Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannae Holdings and Greencity Acquisition.
Diversification Opportunities for Cannae Holdings and Greencity Acquisition
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cannae and Greencity is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cannae Holdings and Greencity Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencity Acquisition and Cannae Holdings 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 Cannae Holdings are associated (or correlated) with Greencity Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greencity Acquisition has no effect on the direction of Cannae Holdings i.e., Cannae Holdings and Greencity Acquisition go up and down completely randomly.
Pair Corralation between Cannae Holdings and Greencity Acquisition
If you would invest 1,847 in Cannae Holdings on September 12, 2024 and sell it today you would earn a total of 218.00 from holding Cannae Holdings or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Cannae Holdings vs. Greencity Acquisition Corp
Performance |
| Timeline |
| Cannae Holdings |
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cannae Holdings and Greencity Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannae Holdings and Greencity Acquisition
The main advantage of trading using opposite Cannae Holdings and Greencity Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannae Holdings position performs unexpectedly, Greencity Acquisition 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 Greencity Acquisition will offset losses from the drop in Greencity Acquisition's long position.| Cannae Holdings vs. Brightsphere Investment Group | Cannae Holdings vs. Adtalem Global Education | Cannae Holdings vs. Hamilton Lane | Cannae Holdings vs. ConnectOne Bancorp |
| Greencity Acquisition vs. Boston Beer | Greencity Acquisition vs. Diageo PLC ADR | Greencity Acquisition vs. Thai Beverage PCL | Greencity Acquisition vs. Anheuser Busch Inbev |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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