Correlation Between Greenland Acquisition and Omega Flex
Can any of the company-specific risk be diversified away by investing in both Greenland Acquisition and Omega Flex 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 Omega Flex 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 Omega Flex, you can compare the effects of market volatilities on Greenland Acquisition and Omega Flex 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 Omega Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Acquisition and Omega Flex.
Diversification Opportunities for Greenland Acquisition and Omega Flex
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greenland and Omega is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Acquisition Corp and Omega Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Flex 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 Omega Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omega Flex has no effect on the direction of Greenland Acquisition i.e., Greenland Acquisition and Omega Flex go up and down completely randomly.
Pair Corralation between Greenland Acquisition and Omega Flex
Given the investment horizon of 90 days Greenland Acquisition Corp is expected to generate 1.43 times more return on investment than Omega Flex. However, Greenland Acquisition is 1.43 times more volatile than Omega Flex. It trades about -0.15 of its potential returns per unit of risk. Omega Flex is currently generating about -0.37 per unit of risk. If you would invest 212.00 in Greenland Acquisition Corp on October 12, 2024 and sell it today you would lose (22.00) from holding Greenland Acquisition Corp or give up 10.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenland Acquisition Corp vs. Omega Flex
Performance |
| Timeline |
| Greenland Acquisition |
| Omega Flex |
Greenland Acquisition and Omega Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Acquisition and Omega Flex
The main advantage of trading using opposite Greenland Acquisition and Omega Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Acquisition position performs unexpectedly, Omega Flex 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 Omega Flex will offset losses from the drop in Omega Flex'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 |
| Omega Flex vs. Helios Technologies | Omega Flex vs. Enpro Industries | Omega Flex vs. Luxfer Holdings PLC | Omega Flex vs. Hurco Companies |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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