Correlation Between Ramaco Resources, and Greenidge Generation
Can any of the company-specific risk be diversified away by investing in both Ramaco Resources, and Greenidge Generation 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 Ramaco Resources, and Greenidge Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramaco Resources, and Greenidge Generation Holdings, you can compare the effects of market volatilities on Ramaco Resources, and Greenidge Generation 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 Ramaco Resources, with a short position of Greenidge Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramaco Resources, and Greenidge Generation.
Diversification Opportunities for Ramaco Resources, and Greenidge Generation
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ramaco and Greenidge is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ramaco Resources, and Greenidge Generation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenidge Generation and Ramaco Resources, 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 Ramaco Resources, are associated (or correlated) with Greenidge Generation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenidge Generation has no effect on the direction of Ramaco Resources, i.e., Ramaco Resources, and Greenidge Generation go up and down completely randomly.
Pair Corralation between Ramaco Resources, and Greenidge Generation
Assuming the 90 days horizon Ramaco Resources, is expected to under-perform the Greenidge Generation. But the stock apears to be less risky and, when comparing its historical volatility, Ramaco Resources, is 5.09 times less risky than Greenidge Generation. The stock trades about -0.08 of its potential returns per unit of risk. The Greenidge Generation Holdings is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 908.00 in Greenidge Generation Holdings on August 28, 2024 and sell it today you would earn a total of 115.00 from holding Greenidge Generation Holdings or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramaco Resources, vs. Greenidge Generation Holdings
Performance |
| Timeline |
| Ramaco Resources, |
| Greenidge Generation |
Ramaco Resources, and Greenidge Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramaco Resources, and Greenidge Generation
The main advantage of trading using opposite Ramaco Resources, and Greenidge Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramaco Resources, position performs unexpectedly, Greenidge Generation 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 Greenidge Generation will offset losses from the drop in Greenidge Generation's long position.| Ramaco Resources, vs. Harrow Health 8625 | Ramaco Resources, vs. Babcock Wilcox Enterprises, | Ramaco Resources, vs. Oxford Lane Capital | Ramaco Resources, vs. B Riley Financial |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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