Correlation Between GreenFirst Forest and Dexterra
Can any of the company-specific risk be diversified away by investing in both GreenFirst Forest and Dexterra 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 GreenFirst Forest and Dexterra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenFirst Forest Products and Dexterra Group, you can compare the effects of market volatilities on GreenFirst Forest and Dexterra 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 GreenFirst Forest with a short position of Dexterra. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenFirst Forest and Dexterra.
Diversification Opportunities for GreenFirst Forest and Dexterra
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GreenFirst and Dexterra is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding GreenFirst Forest Products and Dexterra Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexterra Group and GreenFirst Forest 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 GreenFirst Forest Products are associated (or correlated) with Dexterra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexterra Group has no effect on the direction of GreenFirst Forest i.e., GreenFirst Forest and Dexterra go up and down completely randomly.
Pair Corralation between GreenFirst Forest and Dexterra
Assuming the 90 days trading horizon GreenFirst Forest Products is expected to under-perform the Dexterra. In addition to that, GreenFirst Forest is 1.33 times more volatile than Dexterra Group. It trades about -0.21 of its total potential returns per unit of risk. Dexterra Group is currently generating about 0.03 per unit of volatility. If you would invest 795.00 in Dexterra Group on November 3, 2024 and sell it today you would earn a total of 5.00 from holding Dexterra Group or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenFirst Forest Products vs. Dexterra Group
Performance |
| Timeline |
| GreenFirst Forest |
| Dexterra Group |
GreenFirst Forest and Dexterra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenFirst Forest and Dexterra
The main advantage of trading using opposite GreenFirst Forest and Dexterra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenFirst Forest position performs unexpectedly, Dexterra 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 Dexterra will offset losses from the drop in Dexterra's long position.| GreenFirst Forest vs. Conifex Timber | GreenFirst Forest vs. Itafos Corp | GreenFirst Forest vs. GreenFirst Forest Products | GreenFirst Forest vs. BluMetric Environmental |
| Dexterra vs. Doman Building Materials | Dexterra vs. Topaz Energy Corp | Dexterra vs. Bird Construction | Dexterra vs. Alaris Equity 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 CEOs Directory module to screen CEOs from public companies around the world.
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