Correlation Between SoundHound and Greenland Technologies
Can any of the company-specific risk be diversified away by investing in both SoundHound and Greenland Technologies 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 SoundHound and Greenland Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoundHound AI and Greenland Technologies Holding, you can compare the effects of market volatilities on SoundHound and Greenland Technologies 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 SoundHound with a short position of Greenland Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoundHound and Greenland Technologies.
Diversification Opportunities for SoundHound and Greenland Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SoundHound and Greenland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SoundHound AI and Greenland Technologies Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Technologies and SoundHound 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 SoundHound AI are associated (or correlated) with Greenland Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenland Technologies has no effect on the direction of SoundHound i.e., SoundHound and Greenland Technologies go up and down completely randomly.
Pair Corralation between SoundHound and Greenland Technologies
Given the investment horizon of 90 days SoundHound is expected to generate 20.39 times less return on investment than Greenland Technologies. But when comparing it to its historical volatility, SoundHound AI is 7.8 times less risky than Greenland Technologies. It trades about 0.07 of its potential returns per unit of risk. Greenland Technologies Holding is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Greenland Technologies Holding on November 2, 2024 and sell it today you would lose (6.80) from holding Greenland Technologies Holding or give up 56.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 3.04% |
| Values | Daily Returns |
SoundHound AI vs. Greenland Technologies Holding
Performance |
| Timeline |
| SoundHound AI |
| Greenland Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SoundHound and Greenland Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoundHound and Greenland Technologies
The main advantage of trading using opposite SoundHound and Greenland Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoundHound position performs unexpectedly, Greenland Technologies 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 Technologies will offset losses from the drop in Greenland Technologies' long position.| SoundHound vs. Snowflake | SoundHound vs. Zoom Video Communications | SoundHound vs. Shopify | SoundHound vs. Workday |
| Greenland Technologies vs. Rambler Metals and | Greenland Technologies vs. Aluminum of | Greenland Technologies vs. Western Copper and | Greenland Technologies vs. AerSale 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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