Correlation Between Greenlane Renewables and Cielo Waste

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

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

Diversification Opportunities for Greenlane Renewables and Cielo Waste

0.48

Correlation Coefficient

Greenlane Renewables  Cielo Waste

Very weak diversification

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

Pair Corralation between Greenlane Renewables and Cielo Waste

Assuming the 90 days trading horizon Greenlane Renewables is expected to generate 70.41 times less return on investment than Cielo Waste. But when comparing it to its historical volatility, Greenlane Renewables is 13.77 times less risky than Cielo Waste. It trades about 0.03 of its potential returns per unit of risk. Cielo Waste Solutions is currently generating about 0.13 of returns per unit of risk over similar time horizon. 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

Greenlane Renewables  vs.  Cielo Waste Solutions

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.

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.

Pair Trading with Greenlane Renewables and Cielo Waste

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

The idea behind Greenlane Renewables and Cielo Waste Solutions 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.