Correlation Between Greenland Acquisition and Nordson
Can any of the company-specific risk be diversified away by investing in both Greenland Acquisition and Nordson 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 Nordson 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 Nordson, you can compare the effects of market volatilities on Greenland Acquisition and Nordson 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 Nordson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Acquisition and Nordson.
Diversification Opportunities for Greenland Acquisition and Nordson
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenland and Nordson is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Acquisition Corp and Nordson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordson 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 Nordson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordson has no effect on the direction of Greenland Acquisition i.e., Greenland Acquisition and Nordson go up and down completely randomly.
Pair Corralation between Greenland Acquisition and Nordson
Given the investment horizon of 90 days Greenland Acquisition Corp is expected to generate 4.21 times more return on investment than Nordson. However, Greenland Acquisition is 4.21 times more volatile than Nordson. It trades about 0.01 of its potential returns per unit of risk. Nordson is currently generating about 0.0 per unit of risk. If you would invest 261.00 in Greenland Acquisition Corp on September 12, 2024 and sell it today you would lose (49.00) from holding Greenland Acquisition Corp or give up 18.77% 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. Nordson
Performance |
| Timeline |
| Greenland Acquisition |
| Nordson |
Greenland Acquisition and Nordson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Acquisition and Nordson
The main advantage of trading using opposite Greenland Acquisition and Nordson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Acquisition position performs unexpectedly, Nordson 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 Nordson will offset losses from the drop in Nordson's long position.| Greenland Acquisition vs. Pentair PLC | Greenland Acquisition vs. Parker Hannifin | Greenland Acquisition vs. Emerson Electric | Greenland Acquisition vs. Smith AO |
| Nordson vs. Illinois Tool Works | Nordson vs. Pentair PLC | Nordson vs. Parker Hannifin | Nordson vs. Emerson Electric |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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