Correlation Between MKDWELL Tech and Greenidge Generation
Can any of the company-specific risk be diversified away by investing in both MKDWELL Tech 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 MKDWELL Tech and Greenidge Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MKDWELL Tech Ordinary and Greenidge Generation Holdings, you can compare the effects of market volatilities on MKDWELL Tech 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 MKDWELL Tech with a short position of Greenidge Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of MKDWELL Tech and Greenidge Generation.
Diversification Opportunities for MKDWELL Tech and Greenidge Generation
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MKDWELL and Greenidge is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding MKDWELL Tech Ordinary and Greenidge Generation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenidge Generation and MKDWELL Tech 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 MKDWELL Tech Ordinary 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 MKDWELL Tech i.e., MKDWELL Tech and Greenidge Generation go up and down completely randomly.
Pair Corralation between MKDWELL Tech and Greenidge Generation
Given the investment horizon of 90 days MKDWELL Tech Ordinary is expected to under-perform the Greenidge Generation. In addition to that, MKDWELL Tech is 2.28 times more volatile than Greenidge Generation Holdings. It trades about -0.37 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MKDWELL Tech Ordinary vs. Greenidge Generation Holdings
Performance |
| Timeline |
| MKDWELL Tech Ordinary |
| Greenidge Generation |
MKDWELL Tech and Greenidge Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MKDWELL Tech and Greenidge Generation
The main advantage of trading using opposite MKDWELL Tech and Greenidge Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MKDWELL Tech 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.| MKDWELL Tech vs. Cresud SACIF y | MKDWELL Tech vs. Parker Hannifin | MKDWELL Tech vs. Aldel Financial II | MKDWELL Tech vs. Griffon |
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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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