Correlation Between Greenland Technologies and Rosinbomb
Can any of the company-specific risk be diversified away by investing in both Greenland Technologies and Rosinbomb 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 Rosinbomb 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 Rosinbomb, you can compare the effects of market volatilities on Greenland Technologies and Rosinbomb 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 Rosinbomb. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Technologies and Rosinbomb.
Diversification Opportunities for Greenland Technologies and Rosinbomb
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenland and Rosinbomb is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Technologies Holding and Rosinbomb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rosinbomb 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 Rosinbomb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rosinbomb has no effect on the direction of Greenland Technologies i.e., Greenland Technologies and Rosinbomb go up and down completely randomly.
Pair Corralation between Greenland Technologies and Rosinbomb
Assuming the 90 days horizon Greenland Technologies Holding is expected to generate 3.53 times more return on investment than Rosinbomb. However, Greenland Technologies is 3.53 times more volatile than Rosinbomb. It trades about 0.13 of its potential returns per unit of risk. Rosinbomb is currently generating about 0.04 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 | Very Weak |
| Accuracy | 4.85% |
| Values | Daily Returns |
Greenland Technologies Holding vs. Rosinbomb
Performance |
| Timeline |
| Greenland Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Rosinbomb |
Greenland Technologies and Rosinbomb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Technologies and Rosinbomb
The main advantage of trading using opposite Greenland Technologies and Rosinbomb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Technologies position performs unexpectedly, Rosinbomb 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 Rosinbomb will offset losses from the drop in Rosinbomb'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, |
| Rosinbomb vs. Dear Cashmere Holding | Rosinbomb vs. Goff Corp | Rosinbomb vs. Wialan Technologies | Rosinbomb vs. Cgrowth Capital |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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