Correlation Between Greenidge Generation and IMedia Brands
Can any of the company-specific risk be diversified away by investing in both Greenidge Generation and IMedia Brands 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 Greenidge Generation and IMedia Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenidge Generation Holdings and IMedia Brands 85, you can compare the effects of market volatilities on Greenidge Generation and IMedia Brands 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 Greenidge Generation with a short position of IMedia Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenidge Generation and IMedia Brands.
Diversification Opportunities for Greenidge Generation and IMedia Brands
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greenidge and IMedia is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Greenidge Generation Holdings and IMedia Brands 85 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMedia Brands 85 and Greenidge Generation 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 Greenidge Generation Holdings are associated (or correlated) with IMedia Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMedia Brands 85 has no effect on the direction of Greenidge Generation i.e., Greenidge Generation and IMedia Brands go up and down completely randomly.
Pair Corralation between Greenidge Generation and IMedia Brands
Assuming the 90 days horizon Greenidge Generation Holdings is expected to generate 0.59 times more return on investment than IMedia Brands. However, Greenidge Generation Holdings is 1.69 times less risky than IMedia Brands. It trades about 0.13 of its potential returns per unit of risk. IMedia Brands 85 is currently generating about -0.06 per unit of risk. If you would invest 47.00 in Greenidge Generation Holdings on September 2, 2024 and sell it today you would earn a total of 1,002 from holding Greenidge Generation Holdings or generate 2131.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.04% |
| Values | Daily Returns |
Greenidge Generation Holdings vs. IMedia Brands 85
Performance |
| Timeline |
| Greenidge Generation |
| IMedia Brands 85 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greenidge Generation and IMedia Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenidge Generation and IMedia Brands
The main advantage of trading using opposite Greenidge Generation and IMedia Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenidge Generation position performs unexpectedly, IMedia Brands 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 IMedia Brands will offset losses from the drop in IMedia Brands' long position.| Greenidge Generation vs. bioAffinity Technologies Warrant | Greenidge Generation vs. Stark Focus Group | Greenidge Generation vs. Discount Print USA | Greenidge Generation vs. Armm Inc |
| IMedia Brands vs. Greenidge Generation Holdings | IMedia Brands vs. Synchronoss Technologies 8375 | IMedia Brands vs. Fossil Group 7 | IMedia Brands vs. Harrow Health 8625 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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