Correlation Between Green Plains and Plains All
Can any of the company-specific risk be diversified away by investing in both Green Plains and Plains All 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 Plains and Plains All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Plains Partners and Plains All American, you can compare the effects of market volatilities on Green Plains and Plains All 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 Plains with a short position of Plains All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Plains and Plains All.
Diversification Opportunities for Green Plains and Plains All
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Green and Plains is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Green Plains Partners and Plains All American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plains All American and Green Plains 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 Plains Partners are associated (or correlated) with Plains All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plains All American has no effect on the direction of Green Plains i.e., Green Plains and Plains All go up and down completely randomly.
Pair Corralation between Green Plains and Plains All
If you would invest 1,678 in Plains All American on August 25, 2024 and sell it today you would earn a total of 116.00 from holding Plains All American or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Green Plains Partners vs. Plains All American
Performance |
| Timeline |
| Green Plains Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Plains All American |
Green Plains and Plains All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Plains and Plains All
The main advantage of trading using opposite Green Plains and Plains All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Plains position performs unexpectedly, Plains All 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 Plains All will offset losses from the drop in Plains All's long position.| Green Plains vs. Plains All American | Green Plains vs. Genesis Energy LP | Green Plains vs. Western Midstream Partners | Green Plains vs. Hess Midstream Partners |
| Plains All vs. Genesis Energy LP | Plains All vs. Western Midstream Partners | Plains All vs. Hess Midstream Partners | Plains All vs. Enterprise Products 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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