Correlation Between Greenland Technologies and Weir Group
Can any of the company-specific risk be diversified away by investing in both Greenland Technologies and Weir Group 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 Weir Group 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 Weir Group PLC, you can compare the effects of market volatilities on Greenland Technologies and Weir Group 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 Weir Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Technologies and Weir Group.
Diversification Opportunities for Greenland Technologies and Weir Group
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Greenland and Weir is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Technologies Holding and Weir Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weir Group PLC 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 Weir Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weir Group PLC has no effect on the direction of Greenland Technologies i.e., Greenland Technologies and Weir Group go up and down completely randomly.
Pair Corralation between Greenland Technologies and Weir Group
If you would invest 1,338 in Weir Group PLC on September 2, 2024 and sell it today you would earn a total of 71.00 from holding Weir Group PLC or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.52% |
| Values | Daily Returns |
Greenland Technologies Holding vs. Weir Group PLC
Performance |
| Timeline |
| Greenland Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Weir Group PLC |
Greenland Technologies and Weir Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Technologies and Weir Group
The main advantage of trading using opposite Greenland Technologies and Weir Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Technologies position performs unexpectedly, Weir Group 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 Weir Group will offset losses from the drop in Weir Group's long position.| Greenland Technologies vs. AMCON Distributing | Greenland Technologies vs. Tootsie Roll Industries | Greenland Technologies vs. Universal Technical Institute | Greenland Technologies vs. SunOpta |
| Weir Group vs. Greenshift Corp | Weir Group vs. Next Hydrogen Solutions | Weir Group vs. Quality Industrial Corp | Weir Group vs. Titan Logix Corp |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |