Correlation Between Fossil Group and Greenidge Generation
Can any of the company-specific risk be diversified away by investing in both Fossil Group 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 Fossil Group and Greenidge Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fossil Group 7 and Greenidge Generation Holdings, you can compare the effects of market volatilities on Fossil Group 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 Fossil Group with a short position of Greenidge Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fossil Group and Greenidge Generation.
Diversification Opportunities for Fossil Group and Greenidge Generation
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fossil and Greenidge is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group 7 and Greenidge Generation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenidge Generation and Fossil Group 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 Fossil Group 7 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 Fossil Group i.e., Fossil Group and Greenidge Generation go up and down completely randomly.
Pair Corralation between Fossil Group and Greenidge Generation
Assuming the 90 days horizon Fossil Group is expected to generate 1.51 times less return on investment than Greenidge Generation. In addition to that, Fossil Group is 1.22 times more volatile than Greenidge Generation Holdings. It trades about 0.04 of its total potential returns per unit of risk. Greenidge Generation Holdings is currently generating about 0.07 per unit of volatility. If you would invest 684.00 in Greenidge Generation Holdings on September 2, 2024 and sell it today you would earn a total of 365.00 from holding Greenidge Generation Holdings or generate 53.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fossil Group 7 vs. Greenidge Generation Holdings
Performance |
| Timeline |
| Fossil Group 7 |
| Greenidge Generation |
Fossil Group and Greenidge Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fossil Group and Greenidge Generation
The main advantage of trading using opposite Fossil Group and Greenidge Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fossil Group 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.| Fossil Group vs. Atlanticus Holdings | Fossil Group vs. Harrow Health 8625 | Fossil Group vs. Greenidge Generation Holdings | Fossil Group vs. Ramaco Resources, |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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