Correlation Between Green River and Winmark
Can any of the company-specific risk be diversified away by investing in both Green River and Winmark 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 Winmark 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 Winmark, you can compare the effects of market volatilities on Green River and Winmark 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 Winmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green River and Winmark.
Diversification Opportunities for Green River and Winmark
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Green and Winmark is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Green River Gold and Winmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winmark 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 Winmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winmark has no effect on the direction of Green River i.e., Green River and Winmark go up and down completely randomly.
Pair Corralation between Green River and Winmark
Assuming the 90 days horizon Green River Gold is expected to generate 12.61 times more return on investment than Winmark. However, Green River is 12.61 times more volatile than Winmark. It trades about 0.05 of its potential returns per unit of risk. Winmark is currently generating about 0.07 per unit of risk. If you would invest 3.10 in Green River Gold on September 1, 2024 and sell it today you would lose (2.52) from holding Green River Gold or give up 81.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Green River Gold vs. Winmark
Performance |
| Timeline |
| Green River Gold |
| Winmark |
Green River and Winmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green River and Winmark
The main advantage of trading using opposite Green River and Winmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green River position performs unexpectedly, Winmark 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 Winmark will offset losses from the drop in Winmark's long position.| Green River vs. Ulta Beauty | Green River vs. Williams Sonoma | Green River vs. Dicks Sporting Goods | Green River vs. Best Buy Co |
| Winmark vs. Mesa Laboratories | Winmark vs. Utah Medical Products | Winmark vs. Weyco Group | Winmark vs. Diamond Hill 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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