Correlation Between Firsthand Alternative and Green Century
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Green Century 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 Firsthand Alternative and Green Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Green Century Balanced, you can compare the effects of market volatilities on Firsthand Alternative and Green Century 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 Firsthand Alternative with a short position of Green Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Green Century.
Diversification Opportunities for Firsthand Alternative and Green Century
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Firsthand and Green is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Green Century Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Century Balanced and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Green Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Century Balanced has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Green Century go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Green Century
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 3.95 times more return on investment than Green Century. However, Firsthand Alternative is 3.95 times more volatile than Green Century Balanced. It trades about 0.12 of its potential returns per unit of risk. Green Century Balanced is currently generating about 0.42 per unit of risk. If you would invest 988.00 in Firsthand Alternative Energy on September 1, 2024 and sell it today you would earn a total of 33.00 from holding Firsthand Alternative Energy or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Green Century Balanced
Performance |
| Timeline |
| Firsthand Alternative |
| Green Century Balanced |
Firsthand Alternative and Green Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Green Century
The main advantage of trading using opposite Firsthand Alternative and Green Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Green Century 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 Green Century will offset losses from the drop in Green Century's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Green Century vs. Green Century Equity | Green Century vs. Portfolio 21 Global | Green Century vs. New Alternatives Fund | Green Century vs. Pax Balanced Fund |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |