Correlation Between Fundamental Global and GreenFirst Forest
Can any of the company-specific risk be diversified away by investing in both Fundamental Global and GreenFirst Forest 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 Fundamental Global and GreenFirst Forest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Global and GreenFirst Forest Products, you can compare the effects of market volatilities on Fundamental Global and GreenFirst Forest 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 Fundamental Global with a short position of GreenFirst Forest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Global and GreenFirst Forest.
Diversification Opportunities for Fundamental Global and GreenFirst Forest
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fundamental and GreenFirst is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Global and GreenFirst Forest Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenFirst Forest and Fundamental 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 Fundamental Global are associated (or correlated) with GreenFirst Forest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenFirst Forest has no effect on the direction of Fundamental Global i.e., Fundamental Global and GreenFirst Forest go up and down completely randomly.
Pair Corralation between Fundamental Global and GreenFirst Forest
Considering the 90-day investment horizon Fundamental Global is expected to under-perform the GreenFirst Forest. But the stock apears to be less risky and, when comparing its historical volatility, Fundamental Global is 35.17 times less risky than GreenFirst Forest. The stock trades about 0.0 of its potential returns per unit of risk. The GreenFirst Forest Products is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,050 in GreenFirst Forest Products on August 25, 2024 and sell it today you would lose (650.00) from holding GreenFirst Forest Products or give up 61.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Global vs. GreenFirst Forest Products
Performance |
| Timeline |
| Fundamental Global |
| GreenFirst Forest |
Fundamental Global and GreenFirst Forest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Global and GreenFirst Forest
The main advantage of trading using opposite Fundamental Global and GreenFirst Forest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Global position performs unexpectedly, GreenFirst Forest 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 GreenFirst Forest will offset losses from the drop in GreenFirst Forest's long position.| Fundamental Global vs. International General Insurance | Fundamental Global vs. BB Seguridade Participacoes | Fundamental Global vs. Goosehead Insurance | Fundamental Global vs. Enstar Group Limited |
| GreenFirst Forest vs. Fundamental Global | GreenFirst Forest vs. GreenFirst Forest Products | GreenFirst Forest vs. Galaxy Gaming | GreenFirst Forest vs. OppFi Inc |
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.
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