Correlation Between Greenroc Mining and Kroger
Can any of the company-specific risk be diversified away by investing in both Greenroc Mining and Kroger 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 Greenroc Mining and Kroger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenroc Mining PLC and Kroger Co, you can compare the effects of market volatilities on Greenroc Mining and Kroger 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 Greenroc Mining with a short position of Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenroc Mining and Kroger.
Diversification Opportunities for Greenroc Mining and Kroger
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greenroc and Kroger is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Greenroc Mining PLC and Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kroger and Greenroc Mining 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 Greenroc Mining PLC are associated (or correlated) with Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kroger has no effect on the direction of Greenroc Mining i.e., Greenroc Mining and Kroger go up and down completely randomly.
Pair Corralation between Greenroc Mining and Kroger
Assuming the 90 days trading horizon Greenroc Mining is expected to generate 2.32 times less return on investment than Kroger. In addition to that, Greenroc Mining is 5.03 times more volatile than Kroger Co. It trades about 0.01 of its total potential returns per unit of risk. Kroger Co is currently generating about 0.11 per unit of volatility. If you would invest 5,124 in Kroger Co on September 1, 2024 and sell it today you would earn a total of 970.00 from holding Kroger Co or generate 18.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.47% |
| Values | Daily Returns |
Greenroc Mining PLC vs. Kroger Co
Performance |
| Timeline |
| Greenroc Mining PLC |
| Kroger |
Greenroc Mining and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenroc Mining and Kroger
The main advantage of trading using opposite Greenroc Mining and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenroc Mining position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.| Greenroc Mining vs. Givaudan SA | Greenroc Mining vs. Antofagasta PLC | Greenroc Mining vs. Centamin PLC | Greenroc Mining vs. Atalaya Mining |
| Kroger vs. Thor Mining PLC | Kroger vs. Fulcrum Metals PLC | Kroger vs. Power Metal Resources | Kroger vs. Ecclesiastical Insurance Office |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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