Correlation Between Cavitation Techs and Greenland Acquisition

Can any of the company-specific risk be diversified away by investing in both Cavitation Techs 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 Cavitation Techs and Greenland Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cavitation Techs and Greenland Acquisition Corp, you can compare the effects of market volatilities on Cavitation Techs 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 Cavitation Techs with a short position of Greenland Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cavitation Techs and Greenland Acquisition.

Diversification Opportunities for Cavitation Techs and Greenland Acquisition

0.27

Correlation Coefficient

Cavitation Techs  Greenland Acquisition

Modest diversification

The 3 months correlation between Cavitation and Greenland is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cavitation Techs and Greenland Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenland Acquisition and Cavitation Techs 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 Cavitation Techs 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 Cavitation Techs i.e., Cavitation Techs and Greenland Acquisition go up and down completely randomly.

Pair Corralation between Cavitation Techs and Greenland Acquisition

Given the investment horizon of 90 days Cavitation Techs is expected to generate 2.91 times more return on investment than Greenland Acquisition. However, Cavitation Techs is 2.91 times more volatile than Greenland Acquisition Corp. It trades about 0.08 of its potential returns per unit of risk. Greenland Acquisition Corp is currently generating about 0.03 per unit of risk. If you would invest  3.00  in Cavitation Techs on March 7, 2025 and sell it today you would earn a total of  0.00  from holding Cavitation Techs or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Cavitation Techs  vs.  Greenland Acquisition Corp

Cavitation Techs

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cavitation Techs are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Cavitation Techs unveiled solid returns over the last few months and may actually be approaching a breakup point.

Greenland Acquisition

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Greenland Acquisition Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Greenland Acquisition exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cavitation Techs and Greenland Acquisition

The main advantage of trading using opposite Cavitation Techs and Greenland Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cavitation Techs 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.

The idea behind Cavitation Techs and Greenland Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.