Correlation Between Greenland Technologies and Precision Drilling
Can any of the company-specific risk be diversified away by investing in both Greenland Technologies and Precision Drilling 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 Precision Drilling 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 Precision Drilling, you can compare the effects of market volatilities on Greenland Technologies and Precision Drilling 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 Precision Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Technologies and Precision Drilling.
Diversification Opportunities for Greenland Technologies and Precision Drilling
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Greenland and Precision is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Technologies Holding and Precision Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precision Drilling 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 Precision Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precision Drilling has no effect on the direction of Greenland Technologies i.e., Greenland Technologies and Precision Drilling go up and down completely randomly.
Pair Corralation between Greenland Technologies and Precision Drilling
If you would invest 6,228 in Precision Drilling on September 4, 2024 and sell it today you would earn a total of 13.00 from holding Precision Drilling or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.34% |
| Values | Daily Returns |
Greenland Technologies Holding vs. Precision Drilling
Performance |
| Timeline |
| Greenland Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Precision Drilling |
Greenland Technologies and Precision Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Technologies and Precision Drilling
The main advantage of trading using opposite Greenland Technologies and Precision Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Technologies position performs unexpectedly, Precision Drilling 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 Precision Drilling will offset losses from the drop in Precision Drilling's long position.| Greenland Technologies vs. Relx PLC ADR | Greenland Technologies vs. Scholastic | Greenland Technologies vs. Coursera | Greenland Technologies vs. Afya |
| Precision Drilling vs. Helmerich and Payne | Precision Drilling vs. Nabors Industries | Precision Drilling vs. Seadrill Limited | Precision Drilling vs. Patterson UTI Energy |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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