Correlation Between Greengro Tech and Deere
Can any of the company-specific risk be diversified away by investing in both Greengro Tech and Deere 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 Greengro Tech and Deere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greengro Tech and Deere Company, you can compare the effects of market volatilities on Greengro Tech and Deere 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 Greengro Tech with a short position of Deere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greengro Tech and Deere.
Diversification Opportunities for Greengro Tech and Deere
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greengro and Deere is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greengro Tech and Deere Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deere Company and Greengro Tech 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 Greengro Tech are associated (or correlated) with Deere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deere Company has no effect on the direction of Greengro Tech i.e., Greengro Tech and Deere go up and down completely randomly.
Pair Corralation between Greengro Tech and Deere
If you would invest 39,375 in Deere Company on September 13, 2024 and sell it today you would earn a total of 5,428 from holding Deere Company or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greengro Tech vs. Deere Company
Performance |
| Timeline |
| Greengro Tech |
| Deere Company |
Greengro Tech and Deere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greengro Tech and Deere
The main advantage of trading using opposite Greengro Tech and Deere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greengro Tech position performs unexpectedly, Deere 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 Deere will offset losses from the drop in Deere's long position.| Greengro Tech vs. Deere Company | Greengro Tech vs. Caterpillar | Greengro Tech vs. Lion Electric Corp | Greengro Tech vs. Nikola Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Positions Ratings 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 | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |