Correlation Between Greenland Acquisition and Nabtesco
Can any of the company-specific risk be diversified away by investing in both Greenland Acquisition and Nabtesco 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 Nabtesco 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 Nabtesco, you can compare the effects of market volatilities on Greenland Acquisition and Nabtesco 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 Nabtesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Acquisition and Nabtesco.
Diversification Opportunities for Greenland Acquisition and Nabtesco
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greenland and Nabtesco is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Acquisition Corp and Nabtesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nabtesco 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 Nabtesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nabtesco has no effect on the direction of Greenland Acquisition i.e., Greenland Acquisition and Nabtesco go up and down completely randomly.
Pair Corralation between Greenland Acquisition and Nabtesco
Given the investment horizon of 90 days Greenland Acquisition Corp is expected to under-perform the Nabtesco. But the stock apears to be less risky and, when comparing its historical volatility, Greenland Acquisition Corp is 3.65 times less risky than Nabtesco. The stock trades about -0.18 of its potential returns per unit of risk. The Nabtesco is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 796.00 in Nabtesco on September 24, 2024 and sell it today you would earn a total of 197.00 from holding Nabtesco or generate 24.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Greenland Acquisition Corp vs. Nabtesco
Performance |
| Timeline |
| Greenland Acquisition |
| Nabtesco |
Greenland Acquisition and Nabtesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Acquisition and Nabtesco
The main advantage of trading using opposite Greenland Acquisition and Nabtesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Acquisition position performs unexpectedly, Nabtesco 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 Nabtesco will offset losses from the drop in Nabtesco's 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 |
| Nabtesco vs. Shapeways Holdings, Common | Nabtesco vs. JE Cleantech Holdings | Nabtesco vs. Greenland Acquisition Corp | Nabtesco vs. Laser Photonics |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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