Correlation Between NFT and Greenidge Generation
Can any of the company-specific risk be diversified away by investing in both NFT 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 NFT and Greenidge Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NFT Limited and Greenidge Generation Holdings, you can compare the effects of market volatilities on NFT 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 NFT with a short position of Greenidge Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of NFT and Greenidge Generation.
Diversification Opportunities for NFT and Greenidge Generation
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NFT and Greenidge is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding NFT Limited and Greenidge Generation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenidge Generation and NFT 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 NFT Limited 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 NFT i.e., NFT and Greenidge Generation go up and down completely randomly.
Pair Corralation between NFT and Greenidge Generation
Allowing for the 90-day total investment horizon NFT Limited is expected to under-perform the Greenidge Generation. In addition to that, NFT is 2.79 times more volatile than Greenidge Generation Holdings. It trades about -0.09 of its total potential returns per unit of risk. Greenidge Generation Holdings is currently generating about 0.26 per unit of volatility. If you would invest 858.00 in Greenidge Generation Holdings on November 3, 2024 and sell it today you would earn a total of 142.00 from holding Greenidge Generation Holdings or generate 16.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NFT Limited vs. Greenidge Generation Holdings
Performance |
| Timeline |
| NFT Limited |
| Greenidge Generation |
NFT and Greenidge Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NFT and Greenidge Generation
The main advantage of trading using opposite NFT and Greenidge Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NFT 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.| NFT vs. Ultra Clean Holdings | NFT vs. Iridium Communications | NFT vs. KVH Industries | NFT vs. CleanGo Innovations |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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