Correlation Between Greystone Housing and Timbercreek Financial
Can any of the company-specific risk be diversified away by investing in both Greystone Housing and Timbercreek Financial 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 Timbercreek Financial 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 Timbercreek Financial Corp, you can compare the effects of market volatilities on Greystone Housing and Timbercreek Financial 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 Timbercreek Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greystone Housing and Timbercreek Financial.
Diversification Opportunities for Greystone Housing and Timbercreek Financial
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greystone and Timbercreek is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Greystone Housing Impact and Timbercreek Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timbercreek Financial 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 Timbercreek Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timbercreek Financial has no effect on the direction of Greystone Housing i.e., Greystone Housing and Timbercreek Financial go up and down completely randomly.
Pair Corralation between Greystone Housing and Timbercreek Financial
Considering the 90-day investment horizon Greystone Housing Impact is expected to under-perform the Timbercreek Financial. But the stock apears to be less risky and, when comparing its historical volatility, Greystone Housing Impact is 1.13 times less risky than Timbercreek Financial. The stock trades about -0.15 of its potential returns per unit of risk. The Timbercreek Financial Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 555.00 in Timbercreek Financial Corp on August 24, 2024 and sell it today you would lose (4.00) from holding Timbercreek Financial Corp or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greystone Housing Impact vs. Timbercreek Financial Corp
Performance |
| Timeline |
| Greystone Housing Impact |
| Timbercreek Financial |
Greystone Housing and Timbercreek Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greystone Housing and Timbercreek Financial
The main advantage of trading using opposite Greystone Housing and Timbercreek Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greystone Housing position performs unexpectedly, Timbercreek Financial 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 Timbercreek Financial will offset losses from the drop in Timbercreek Financial'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 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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