Correlation Between Greenland Acquisition and Laser Photonics
Can any of the company-specific risk be diversified away by investing in both Greenland Acquisition and Laser Photonics 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 Greenland Acquisition and Laser Photonics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenland Acquisition Corp and Laser Photonics, you can compare the effects of market volatilities on Greenland Acquisition and Laser Photonics 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 Greenland Acquisition with a short position of Laser Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Acquisition and Laser Photonics.
Diversification Opportunities for Greenland Acquisition and Laser Photonics
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greenland and Laser is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Acquisition Corp and Laser Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laser Photonics and Greenland 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 Greenland Acquisition Corp are associated (or correlated) with Laser Photonics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laser Photonics has no effect on the direction of Greenland Acquisition i.e., Greenland Acquisition and Laser Photonics go up and down completely randomly.
Pair Corralation between Greenland Acquisition and Laser Photonics
Given the investment horizon of 90 days Greenland Acquisition Corp is expected to under-perform the Laser Photonics. But the stock apears to be less risky and, when comparing its historical volatility, Greenland Acquisition Corp is 2.48 times less risky than Laser Photonics. The stock trades about -0.15 of its potential returns per unit of risk. The Laser Photonics is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 571.00 in Laser Photonics on October 12, 2024 and sell it today you would lose (54.00) from holding Laser Photonics or give up 9.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenland Acquisition Corp vs. Laser Photonics
Performance |
| Timeline |
| Greenland Acquisition |
| Laser Photonics |
Greenland Acquisition and Laser Photonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Acquisition and Laser Photonics
The main advantage of trading using opposite Greenland Acquisition and Laser Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Acquisition position performs unexpectedly, Laser Photonics 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 Laser Photonics will offset losses from the drop in Laser Photonics' long position.| Greenland Acquisition vs. Shapeways Holdings, Common | Greenland Acquisition vs. JE Cleantech Holdings | Greenland Acquisition vs. Laser Photonics | Greenland Acquisition vs. Siemens AG Class |
| Laser Photonics vs. Nuburu Inc | Laser Photonics vs. JE Cleantech Holdings | Laser Photonics vs. Reelcause | Laser Photonics vs. Shapeways Holdings, Common |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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