Correlation Between Hong Kong and Greenland Acquisition
Can any of the company-specific risk be diversified away by investing in both Hong Kong 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 Hong Kong and Greenland Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hong Kong Pharma and Greenland Acquisition Corp, you can compare the effects of market volatilities on Hong Kong 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 Hong Kong with a short position of Greenland Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and Greenland Acquisition.
Diversification Opportunities for Hong Kong and Greenland Acquisition
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hong and Greenland is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Pharma and Greenland Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Acquisition and Hong Kong 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 Hong Kong Pharma 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 Hong Kong i.e., Hong Kong and Greenland Acquisition go up and down completely randomly.
Pair Corralation between Hong Kong and Greenland Acquisition
Given the investment horizon of 90 days Hong Kong Pharma is expected to under-perform the Greenland Acquisition. In addition to that, Hong Kong is 1.91 times more volatile than Greenland Acquisition Corp. It trades about -0.05 of its total potential returns per unit of risk. Greenland Acquisition Corp is currently generating about -0.05 per unit of volatility. If you would invest 129.00 in Greenland Acquisition Corp on September 8, 2025 and sell it today you would lose (23.00) from holding Greenland Acquisition Corp or give up 17.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hong Kong Pharma vs. Greenland Acquisition Corp
Performance |
| Timeline |
| Hong Kong Pharma |
| Greenland Acquisition |
Hong Kong and Greenland Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and Greenland Acquisition
The main advantage of trading using opposite Hong Kong and Greenland Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong 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.| Hong Kong vs. Knight Transportation | Hong Kong vs. CanSino Biologics | Hong Kong vs. Strainsforpains | Hong Kong vs. Marten Transport |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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