Correlation Between East Resources and Greencity Acquisition
Can any of the company-specific risk be diversified away by investing in both East Resources 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 East Resources and Greencity Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Resources Acquisition and Greencity Acquisition Corp, you can compare the effects of market volatilities on East Resources 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 East Resources with a short position of Greencity Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Resources and Greencity Acquisition.
Diversification Opportunities for East Resources and Greencity Acquisition
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between East and Greencity is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding East Resources Acquisition and Greencity Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencity Acquisition and East Resources 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 East Resources Acquisition 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 East Resources i.e., East Resources and Greencity Acquisition go up and down completely randomly.
Pair Corralation between East Resources and Greencity Acquisition
If you would invest 1,146 in Greencity Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Greencity Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Resources Acquisition vs. Greencity Acquisition Corp
Performance |
| Timeline |
| East Resources Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
East Resources and Greencity Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Resources and Greencity Acquisition
The main advantage of trading using opposite East Resources and Greencity Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Resources 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.| East Resources vs. Eldorado Gold Corp | East Resources vs. Stepan Company | East Resources vs. Olympic Steel | East Resources vs. Griffon |
| Greencity Acquisition vs. Griffon | Greencity Acquisition vs. Minerals Technologies | Greencity Acquisition vs. Maiden Holdings | Greencity Acquisition vs. Parker Hannifin |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |