Correlation Between Cielo Waste and Greenlane Renewables

Can any of the company-specific risk be diversified away by investing in both Cielo Waste and Greenlane Renewables 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 Cielo Waste and Greenlane Renewables into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cielo Waste Solutions and Greenlane Renewables, you can compare the effects of market volatilities on Cielo Waste and Greenlane Renewables 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 Cielo Waste with a short position of Greenlane Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cielo Waste and Greenlane Renewables.

Diversification Opportunities for Cielo Waste and Greenlane Renewables

0.48

Correlation Coefficient

Cielo Waste  Greenlane Renewables

Very weak diversification

The 3 months correlation between Cielo and Greenlane is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cielo Waste Solutions and Greenlane Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlane Renewables and Cielo Waste 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 Cielo Waste Solutions are associated (or correlated) with Greenlane Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlane Renewables has no effect on the direction of Cielo Waste i.e., Cielo Waste and Greenlane Renewables go up and down completely randomly.

Pair Corralation between Cielo Waste and Greenlane Renewables

Assuming the 90 days horizon Cielo Waste Solutions is expected to generate 13.77 times more return on investment than Greenlane Renewables. However, Cielo Waste is 13.77 times more volatile than Greenlane Renewables. It trades about 0.13 of its potential returns per unit of risk. Greenlane Renewables is currently generating about 0.03 per unit of risk. If you would invest  4.00  in Cielo Waste Solutions on May 6, 2025 and sell it today you would lose (2.60) from holding Cielo Waste Solutions or give up 65.0% of portfolio value over 90 days.

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

Cielo Waste Solutions  vs.  Greenlane Renewables

Cielo Waste Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cielo Waste Solutions are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Cielo Waste reported solid returns over the last few months and may actually be approaching a breakup point.

Greenlane Renewables

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Greenlane Renewables are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Greenlane Renewables may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cielo Waste and Greenlane Renewables

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

The idea behind Cielo Waste Solutions and Greenlane Renewables 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.