Correlation Between Greenshift Corp and Next Hydrogen
Can any of the company-specific risk be diversified away by investing in both Greenshift Corp and Next Hydrogen 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 Greenshift Corp and Next Hydrogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenshift Corp and Next Hydrogen Solutions, you can compare the effects of market volatilities on Greenshift Corp and Next Hydrogen 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 Greenshift Corp with a short position of Next Hydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenshift Corp and Next Hydrogen.
Diversification Opportunities for Greenshift Corp and Next Hydrogen
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greenshift and Next is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Greenshift Corp and Next Hydrogen Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Hydrogen Solutions and Greenshift Corp 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 Greenshift Corp are associated (or correlated) with Next Hydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Hydrogen Solutions has no effect on the direction of Greenshift Corp i.e., Greenshift Corp and Next Hydrogen go up and down completely randomly.
Pair Corralation between Greenshift Corp and Next Hydrogen
Given the investment horizon of 90 days Greenshift Corp is expected to generate 1.8 times less return on investment than Next Hydrogen. But when comparing it to its historical volatility, Greenshift Corp is 1.5 times less risky than Next Hydrogen. It trades about 0.05 of its potential returns per unit of risk. Next Hydrogen Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Next Hydrogen Solutions on September 3, 2024 and sell it today you would lose (26.00) from holding Next Hydrogen Solutions or give up 46.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Greenshift Corp vs. Next Hydrogen Solutions
Performance |
| Timeline |
| Greenshift Corp |
| Next Hydrogen Solutions |
Greenshift Corp and Next Hydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenshift Corp and Next Hydrogen
The main advantage of trading using opposite Greenshift Corp and Next Hydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenshift Corp position performs unexpectedly, Next Hydrogen 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 Next Hydrogen will offset losses from the drop in Next Hydrogen's long position.| Greenshift Corp vs. Seadrill Limited | Greenshift Corp vs. Noble plc | Greenshift Corp vs. Borr Drilling | Greenshift Corp vs. SCOR PK |
| Next Hydrogen vs. Weir Group PLC | Next Hydrogen vs. Greenshift Corp | Next Hydrogen vs. Quality Industrial Corp | Next Hydrogen vs. ITM Power Plc |
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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