Correlation Between Greenroc Mining and New Residential
Can any of the company-specific risk be diversified away by investing in both Greenroc Mining and New Residential 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 New Residential 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 New Residential Investment, you can compare the effects of market volatilities on Greenroc Mining and New Residential 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 New Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenroc Mining and New Residential.
Diversification Opportunities for Greenroc Mining and New Residential
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Greenroc and New is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Greenroc Mining PLC and New Residential Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Residential Inve 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 New Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Residential Inve has no effect on the direction of Greenroc Mining i.e., Greenroc Mining and New Residential go up and down completely randomly.
Pair Corralation between Greenroc Mining and New Residential
Assuming the 90 days trading horizon Greenroc Mining PLC is expected to under-perform the New Residential. In addition to that, Greenroc Mining is 4.68 times more volatile than New Residential Investment. It trades about -0.04 of its total potential returns per unit of risk. New Residential Investment is currently generating about 0.22 per unit of volatility. If you would invest 1,070 in New Residential Investment on August 30, 2024 and sell it today you would earn a total of 52.00 from holding New Residential Investment or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenroc Mining PLC vs. New Residential Investment
Performance |
| Timeline |
| Greenroc Mining PLC |
| New Residential Inve |
Greenroc Mining and New Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenroc Mining and New Residential
The main advantage of trading using opposite Greenroc Mining and New Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenroc Mining position performs unexpectedly, New Residential 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 New Residential will offset losses from the drop in New Residential's long position.| Greenroc Mining vs. Bytes Technology | Greenroc Mining vs. Check Point Software | Greenroc Mining vs. G5 Entertainment AB | Greenroc Mining vs. Grand Vision Media |
| New Residential vs. Tungsten West PLC | New Residential vs. Argo Group Limited | New Residential vs. Hardide PLC | New Residential vs. Versarien PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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