Correlation Between Empire Global and Green Plains
Can any of the company-specific risk be diversified away by investing in both Empire Global and Green Plains 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 Empire Global and Green Plains into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire Global Gaming and Green Plains Partners, you can compare the effects of market volatilities on Empire Global and Green Plains 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 Empire Global with a short position of Green Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire Global and Green Plains.
Diversification Opportunities for Empire Global and Green Plains
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Empire and Green is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Empire Global Gaming and Green Plains Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Plains Partners and Empire Global 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 Empire Global Gaming are associated (or correlated) with Green Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Plains Partners has no effect on the direction of Empire Global i.e., Empire Global and Green Plains go up and down completely randomly.
Pair Corralation between Empire Global and Green Plains
If you would invest 1,416 in Green Plains Partners on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Green Plains Partners or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Empire Global Gaming vs. Green Plains Partners
Performance |
| Timeline |
| Empire Global Gaming |
| Green Plains Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Empire Global and Green Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire Global and Green Plains
The main advantage of trading using opposite Empire Global and Green Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire Global position performs unexpectedly, Green Plains 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 Plains will offset losses from the drop in Green Plains' long position.| Empire Global vs. Intema Solutions | Empire Global vs. Royal Wins | Empire Global vs. Real Luck Group | Empire Global vs. Betmakers Technology Group |
| Green Plains vs. Plains All American | Green Plains vs. Genesis Energy LP | Green Plains vs. Western Midstream Partners | Green Plains vs. Hess Midstream Partners |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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