Correlation Between Green River and Ceconomy
Can any of the company-specific risk be diversified away by investing in both Green River and Ceconomy 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 Green River and Ceconomy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green River Gold and Ceconomy AG ADR, you can compare the effects of market volatilities on Green River and Ceconomy 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 Green River with a short position of Ceconomy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green River and Ceconomy.
Diversification Opportunities for Green River and Ceconomy
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Green and Ceconomy is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Green River Gold and Ceconomy AG ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceconomy AG ADR and Green River 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 Green River Gold are associated (or correlated) with Ceconomy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceconomy AG ADR has no effect on the direction of Green River i.e., Green River and Ceconomy go up and down completely randomly.
Pair Corralation between Green River and Ceconomy
Assuming the 90 days horizon Green River Gold is expected to generate 3.15 times more return on investment than Ceconomy. However, Green River is 3.15 times more volatile than Ceconomy AG ADR. It trades about 0.25 of its potential returns per unit of risk. Ceconomy AG ADR is currently generating about 0.24 per unit of risk. If you would invest 0.58 in Green River Gold on November 3, 2024 and sell it today you would earn a total of 0.42 from holding Green River Gold or generate 72.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Green River Gold vs. Ceconomy AG ADR
Performance |
| Timeline |
| Green River Gold |
| Ceconomy AG ADR |
Green River and Ceconomy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green River and Ceconomy
The main advantage of trading using opposite Green River and Ceconomy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green River position performs unexpectedly, Ceconomy 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 Ceconomy will offset losses from the drop in Ceconomy's long position.| Green River vs. Dixons Carphone plc | Green River vs. Ceconomy AG ADR | Green River vs. Tandy Leather Factory | Green River vs. Card Factory plc |
| Ceconomy vs. Green River Gold | Ceconomy vs. Dixons Carphone plc | Ceconomy vs. Tandy Leather Factory | Ceconomy vs. Card Factory plc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |