Correlation Between Green Planet and FUNR
Can any of the company-specific risk be diversified away by investing in both Green Planet and FUNR 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 Green Planet and FUNR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Planet Bio and FUNR, you can compare the effects of market volatilities on Green Planet and FUNR 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 Green Planet with a short position of FUNR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Planet and FUNR.
Diversification Opportunities for Green Planet and FUNR
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Green and FUNR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Green Planet Bio and FUNR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUNR and Green Planet 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 Green Planet Bio are associated (or correlated) with FUNR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUNR has no effect on the direction of Green Planet i.e., Green Planet and FUNR go up and down completely randomly.
Pair Corralation between Green Planet and FUNR
Given the investment horizon of 90 days Green Planet Bio is expected to under-perform the FUNR. But the pink sheet apears to be less risky and, when comparing its historical volatility, Green Planet Bio is 11.08 times less risky than FUNR. The pink sheet trades about 0.0 of its potential returns per unit of risk. The FUNR is currently generating about 0.14 of returns per unit of risk over similar time horizon. 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 |
Green Planet Bio vs. FUNR
Performance |
| Timeline |
| Green Planet Bio |
| FUNR |
Green Planet and FUNR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Planet and FUNR
The main advantage of trading using opposite Green Planet and FUNR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Planet position performs unexpectedly, FUNR 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 FUNR will offset losses from the drop in FUNR's long position.| Green Planet vs. Hunter Creek Mining | Green Planet vs. China Tontine Wines | Green Planet vs. PepsiCo | Green Planet vs. Diageo PLC ADR |
| FUNR vs. Bowmo Inc | FUNR vs. Eco Innovation Group | FUNR vs. Profitable Develop | FUNR vs. Legends Business Grp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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