Correlation Between Greenland Technologies and Heidelberger Druckmaschinen
Can any of the company-specific risk be diversified away by investing in both Greenland Technologies and Heidelberger Druckmaschinen 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 Heidelberger Druckmaschinen 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 Heidelberger Druckmaschinen AG, you can compare the effects of market volatilities on Greenland Technologies and Heidelberger Druckmaschinen 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 Heidelberger Druckmaschinen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Technologies and Heidelberger Druckmaschinen.
Diversification Opportunities for Greenland Technologies and Heidelberger Druckmaschinen
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenland and Heidelberger is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Technologies Holding and Heidelberger Druckmaschinen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heidelberger Druckmaschinen 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 Heidelberger Druckmaschinen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heidelberger Druckmaschinen has no effect on the direction of Greenland Technologies i.e., Greenland Technologies and Heidelberger Druckmaschinen go up and down completely randomly.
Pair Corralation between Greenland Technologies and Heidelberger Druckmaschinen
If you would invest 5.20 in Greenland Technologies Holding on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Greenland Technologies Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Greenland Technologies Holding vs. Heidelberger Druckmaschinen AG
Performance |
| Timeline |
| Greenland Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Heidelberger Druckmaschinen |
Greenland Technologies and Heidelberger Druckmaschinen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Technologies and Heidelberger Druckmaschinen
The main advantage of trading using opposite Greenland Technologies and Heidelberger Druckmaschinen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Technologies position performs unexpectedly, Heidelberger Druckmaschinen 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 Heidelberger Druckmaschinen will offset losses from the drop in Heidelberger Druckmaschinen's long position.| Greenland Technologies vs. AMCON Distributing | Greenland Technologies vs. Tootsie Roll Industries | Greenland Technologies vs. Universal Technical Institute | Greenland Technologies vs. SunOpta |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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