Correlation Between Alpha Technology and Greentown Management

Can any of the company-specific risk be diversified away by investing in both Alpha Technology and Greentown Management 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 Alpha Technology and Greentown Management into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alpha Technology Group and Greentown Management Holdings, you can compare the effects of market volatilities on Alpha Technology and Greentown Management 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 Alpha Technology with a short position of Greentown Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Technology and Greentown Management.

Diversification Opportunities for Alpha Technology and Greentown Management

-0.61

Correlation Coefficient

Alpha Technology  Greentown Management

Excellent diversification

The 3 months correlation between Alpha and Greentown is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Technology Group and Greentown Management Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greentown Management and Alpha Technology 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 Alpha Technology Group are associated (or correlated) with Greentown Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greentown Management has no effect on the direction of Alpha Technology i.e., Alpha Technology and Greentown Management go up and down completely randomly.

Pair Corralation between Alpha Technology and Greentown Management

Given the investment horizon of 90 days Alpha Technology Group is expected to under-perform the Greentown Management. In addition to that, Alpha Technology is 4.67 times more volatile than Greentown Management Holdings. It trades about -0.13 of its total potential returns per unit of risk. Greentown Management Holdings is currently generating about 0.13 per unit of volatility. If you would invest  47.00  in Greentown Management Holdings on May 15, 2025 and sell it today you would earn a total of  3.00  from holding Greentown Management Holdings or generate 6.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Alpha Technology Group  vs.  Greentown Management Holdings

Alpha Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Alpha Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Greentown Management

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Greentown Management Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, Greentown Management may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Alpha Technology and Greentown Management

The main advantage of trading using opposite Alpha Technology and Greentown Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Technology position performs unexpectedly, Greentown Management 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 Greentown Management will offset losses from the drop in Greentown Management's long position.

The idea behind Alpha Technology Group and Greentown Management Holdings 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.