Correlation Between Greystone Housing and Federal Home
Can any of the company-specific risk be diversified away by investing in both Greystone Housing and Federal Home 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 Greystone Housing and Federal Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greystone Housing Impact and Federal Home Loan, you can compare the effects of market volatilities on Greystone Housing and Federal Home 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 Greystone Housing with a short position of Federal Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greystone Housing and Federal Home.
Diversification Opportunities for Greystone Housing and Federal Home
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greystone and Federal is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Greystone Housing Impact and Federal Home Loan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Home Loan and Greystone Housing 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 Greystone Housing Impact are associated (or correlated) with Federal Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Home Loan has no effect on the direction of Greystone Housing i.e., Greystone Housing and Federal Home go up and down completely randomly.
Pair Corralation between Greystone Housing and Federal Home
Considering the 90-day investment horizon Greystone Housing Impact is expected to under-perform the Federal Home. But the stock apears to be less risky and, when comparing its historical volatility, Greystone Housing Impact is 3.76 times less risky than Federal Home. The stock trades about -0.01 of its potential returns per unit of risk. The Federal Home Loan is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Federal Home Loan on August 27, 2024 and sell it today you would earn a total of 266.00 from holding Federal Home Loan or generate 604.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greystone Housing Impact vs. Federal Home Loan
Performance |
| Timeline |
| Greystone Housing Impact |
| Federal Home Loan |
Greystone Housing and Federal Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greystone Housing and Federal Home
The main advantage of trading using opposite Greystone Housing and Federal Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greystone Housing position performs unexpectedly, Federal Home 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 Federal Home will offset losses from the drop in Federal Home's long position.| Greystone Housing vs. Guild Holdings Co | Greystone Housing vs. Security National Financial | Greystone Housing vs. Encore Capital Group | Greystone Housing vs. PennyMac Finl Svcs |
| Federal Home vs. Encore Capital Group | Federal Home vs. CNFinance Holdings | Federal Home vs. Greystone Housing Impact | Federal Home vs. Rocket Companies |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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