Correlation Between Shapeways Holdings, and Greenland Acquisition
Can any of the company-specific risk be diversified away by investing in both Shapeways Holdings, and Greenland Acquisition 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 Shapeways Holdings, and Greenland Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shapeways Holdings, Common and Greenland Acquisition Corp, you can compare the effects of market volatilities on Shapeways Holdings, and Greenland Acquisition 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 Shapeways Holdings, with a short position of Greenland Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shapeways Holdings, and Greenland Acquisition.
Diversification Opportunities for Shapeways Holdings, and Greenland Acquisition
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shapeways and Greenland is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shapeways Holdings, Common and Greenland Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Acquisition and Shapeways Holdings, 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 Shapeways Holdings, Common are associated (or correlated) with Greenland Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Acquisition has no effect on the direction of Shapeways Holdings, i.e., Shapeways Holdings, and Greenland Acquisition go up and down completely randomly.
Pair Corralation between Shapeways Holdings, and Greenland Acquisition
Given the investment horizon of 90 days Shapeways Holdings, Common is expected to generate 5.25 times more return on investment than Greenland Acquisition. However, Shapeways Holdings, is 5.25 times more volatile than Greenland Acquisition Corp. It trades about 0.22 of its potential returns per unit of risk. Greenland Acquisition Corp is currently generating about -0.22 per unit of risk. If you would invest 0.01 in Shapeways Holdings, Common on August 28, 2024 and sell it today you would earn a total of 0.01 from holding Shapeways Holdings, Common or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shapeways Holdings, Common vs. Greenland Acquisition Corp
Performance |
| Timeline |
| Shapeways Holdings, |
| Greenland Acquisition |
Shapeways Holdings, and Greenland Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shapeways Holdings, and Greenland Acquisition
The main advantage of trading using opposite Shapeways Holdings, and Greenland Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shapeways Holdings, position performs unexpectedly, Greenland Acquisition 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 Greenland Acquisition will offset losses from the drop in Greenland Acquisition's long position.| Shapeways Holdings, vs. Gates Industrial | Shapeways Holdings, vs. Crane Company | Shapeways Holdings, vs. Babcock Wilcox Enterprises | Shapeways Holdings, vs. JE Cleantech Holdings |
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.
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