Correlation Between Greenrose Acquisition and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Greenrose Acquisition and Dow Jones 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 Greenrose Acquisition and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenrose Acquisition Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Greenrose Acquisition and Dow Jones 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 Greenrose Acquisition with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenrose Acquisition and Dow Jones.
Diversification Opportunities for Greenrose Acquisition and Dow Jones
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greenrose and Dow is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Greenrose Acquisition Corp and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Greenrose Acquisition 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 Greenrose Acquisition Corp are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Greenrose Acquisition i.e., Greenrose Acquisition and Dow Jones go up and down completely randomly.
Pair Corralation between Greenrose Acquisition and Dow Jones
Given the investment horizon of 90 days Greenrose Acquisition Corp is expected to generate 43.91 times more return on investment than Dow Jones. However, Greenrose Acquisition is 43.91 times more volatile than Dow Jones Industrial. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 36.00 in Greenrose Acquisition Corp on September 3, 2024 and sell it today you would lose (8.00) from holding Greenrose Acquisition Corp or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 29.09% |
| Values | Daily Returns |
Greenrose Acquisition Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Greenrose Acquisition and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Greenrose Acquisition Corp
Pair trading matchups for Greenrose Acquisition
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Greenrose Acquisition and Dow Jones
The main advantage of trading using opposite Greenrose Acquisition and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenrose Acquisition position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Greenrose Acquisition vs. Entourage Health Corp | Greenrose Acquisition vs. Lowell Farms | Greenrose Acquisition vs. Delta 9 Cannabis | Greenrose Acquisition vs. Goodness Growth Holdings |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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