Correlation Between Green Stream and American Security
Can any of the company-specific risk be diversified away by investing in both Green Stream and American Security 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 Stream and American Security into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Stream Holdings and American Security Resources, you can compare the effects of market volatilities on Green Stream and American Security 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 Stream with a short position of American Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Stream and American Security.
Diversification Opportunities for Green Stream and American Security
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Green and American is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Stream Holdings and American Security Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Security and Green Stream 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 Stream Holdings are associated (or correlated) with American Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Security has no effect on the direction of Green Stream i.e., Green Stream and American Security go up and down completely randomly.
Pair Corralation between Green Stream and American Security
If you would invest 0.01 in American Security Resources on August 31, 2024 and sell it today you would earn a total of 0.00 from holding American Security Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Green Stream Holdings vs. American Security Resources
Performance |
| Timeline |
| Green Stream Holdings |
| American Security |
Green Stream and American Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Stream and American Security
The main advantage of trading using opposite Green Stream and American Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Stream position performs unexpectedly, American Security 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 American Security will offset losses from the drop in American Security's long position.| Green Stream vs. Constellation Energy Corp | Green Stream vs. Orsted AS ADR | Green Stream vs. HUMANA INC | Green Stream vs. Aquagold International |
| American Security vs. Astra Energy | American Security vs. Alternus Energy Group | American Security vs. Carnegie Clean Energy | American Security vs. Altius Renewable Royalties |
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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