Correlation Between INLIF LIMITED and Greentown Management

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

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

Diversification Opportunities for INLIF LIMITED and Greentown Management

-0.36

Correlation Coefficient

INLIF LIMITED  Greentown Management

Very good diversification

The 3 months correlation between INLIF and Greentown is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding INLIF LIMITED Ordinary and Greentown Management Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greentown Management and INLIF LIMITED 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 INLIF LIMITED Ordinary 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 INLIF LIMITED i.e., INLIF LIMITED and Greentown Management go up and down completely randomly.

Pair Corralation between INLIF LIMITED and Greentown Management

Given the investment horizon of 90 days INLIF LIMITED is expected to generate 1.04 times less return on investment than Greentown Management. In addition to that, INLIF LIMITED is 10.13 times more volatile than Greentown Management Holdings. It trades about 0.01 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 2, 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	Insignificant
Accuracy	98.41%
Values	Daily Returns

INLIF LIMITED Ordinary  vs.  Greentown Management Holdings

INLIF LIMITED Ordinary

Risk-Adjusted Performance

Very Weak

Over the last 90 days INLIF LIMITED Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, INLIF LIMITED is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Greentown Management

Risk-Adjusted Performance

OK

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 uncertain technical indicators, Greentown Management may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with INLIF LIMITED and Greentown Management

The main advantage of trading using opposite INLIF LIMITED and Greentown Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INLIF LIMITED 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 INLIF LIMITED Ordinary 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.