Correlation Between Greenland Technologies and Daifuku
Can any of the company-specific risk be diversified away by investing in both Greenland Technologies and Daifuku 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 Technologies and Daifuku into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenland Technologies Holding and Daifuku Co, you can compare the effects of market volatilities on Greenland Technologies and Daifuku 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 Technologies with a short position of Daifuku. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Technologies and Daifuku.
Diversification Opportunities for Greenland Technologies and Daifuku
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenland and Daifuku is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Technologies Holding and Daifuku Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daifuku and Greenland Technologies 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 Technologies Holding are associated (or correlated) with Daifuku. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daifuku has no effect on the direction of Greenland Technologies i.e., Greenland Technologies and Daifuku go up and down completely randomly.
Pair Corralation between Greenland Technologies and Daifuku
Assuming the 90 days horizon Greenland Technologies Holding is expected to generate 23.94 times more return on investment than Daifuku. However, Greenland Technologies is 23.94 times more volatile than Daifuku Co. It trades about 0.13 of its potential returns per unit of risk. Daifuku Co is currently generating about 0.03 per unit of risk. If you would invest 20.00 in Greenland Technologies Holding on September 3, 2024 and sell it today you would lose (14.80) from holding Greenland Technologies Holding or give up 74.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.85% |
| Values | Daily Returns |
Greenland Technologies Holding vs. Daifuku Co
Performance |
| Timeline |
| Greenland Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Daifuku |
Greenland Technologies and Daifuku Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Technologies and Daifuku
The main advantage of trading using opposite Greenland Technologies and Daifuku positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Technologies position performs unexpectedly, Daifuku 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 Daifuku will offset losses from the drop in Daifuku's long position.| Greenland Technologies vs. Precision Drilling | Greenland Technologies vs. Kite Realty Group | Greenland Technologies vs. ATRenew Inc DRC | Greenland Technologies vs. The Gap, |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |