Correlation Between FUNR and Green Planet
Can any of the company-specific risk be diversified away by investing in both FUNR and Green Planet 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 FUNR and Green Planet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUNR and Green Planet Bio, you can compare the effects of market volatilities on FUNR and Green Planet 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 FUNR with a short position of Green Planet. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUNR and Green Planet.
Diversification Opportunities for FUNR and Green Planet
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FUNR and Green is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FUNR and Green Planet Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Planet Bio and FUNR 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 FUNR are associated (or correlated) with Green Planet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Planet Bio has no effect on the direction of FUNR i.e., FUNR and Green Planet go up and down completely randomly.
Pair Corralation between FUNR and Green Planet
Given the investment horizon of 90 days FUNR is expected to generate 11.08 times more return on investment than Green Planet. However, FUNR is 11.08 times more volatile than Green Planet Bio. It trades about 0.14 of its potential returns per unit of risk. Green Planet Bio is currently generating about 0.0 per unit of risk. If you would invest 0.01 in FUNR on November 27, 2024 and sell it today you would earn a total of 0.01 from holding FUNR or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.67% |
| Values | Daily Returns |
FUNR vs. Green Planet Bio
Performance |
| Timeline |
| FUNR |
| Green Planet Bio |
FUNR and Green Planet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUNR and Green Planet
The main advantage of trading using opposite FUNR and Green Planet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUNR position performs unexpectedly, Green Planet 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 Planet will offset losses from the drop in Green Planet's long position.| FUNR vs. Bowmo Inc | FUNR vs. Eco Innovation Group | FUNR vs. Profitable Develop | FUNR vs. Legends Business Grp |
| Green Planet vs. Hunter Creek Mining | Green Planet vs. China Tontine Wines | Green Planet vs. PepsiCo | Green Planet vs. Diageo PLC ADR |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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