Correlation Between GreenFirst Forest and Freedom Bank
Can any of the company-specific risk be diversified away by investing in both GreenFirst Forest and Freedom Bank 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 GreenFirst Forest and Freedom Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenFirst Forest Products and Freedom Bank of, you can compare the effects of market volatilities on GreenFirst Forest and Freedom Bank 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 GreenFirst Forest with a short position of Freedom Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenFirst Forest and Freedom Bank.
Diversification Opportunities for GreenFirst Forest and Freedom Bank
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GreenFirst and Freedom is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding GreenFirst Forest Products and Freedom Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Bank and GreenFirst Forest 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 GreenFirst Forest Products are associated (or correlated) with Freedom Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Bank has no effect on the direction of GreenFirst Forest i.e., GreenFirst Forest and Freedom Bank go up and down completely randomly.
Pair Corralation between GreenFirst Forest and Freedom Bank
Assuming the 90 days horizon GreenFirst Forest Products is expected to generate 147.66 times more return on investment than Freedom Bank. However, GreenFirst Forest is 147.66 times more volatile than Freedom Bank of. It trades about 0.19 of its potential returns per unit of risk. Freedom Bank of is currently generating about -0.05 per unit of risk. If you would invest 113.00 in GreenFirst Forest Products on September 14, 2024 and sell it today you would earn a total of 275.00 from holding GreenFirst Forest Products or generate 243.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.98% |
| Values | Daily Returns |
GreenFirst Forest Products vs. Freedom Bank of
Performance |
| Timeline |
| GreenFirst Forest |
| Freedom Bank |
GreenFirst Forest and Freedom Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenFirst Forest and Freedom Bank
The main advantage of trading using opposite GreenFirst Forest and Freedom Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenFirst Forest position performs unexpectedly, Freedom Bank 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 Freedom Bank will offset losses from the drop in Freedom Bank's long position.| GreenFirst Forest vs. Fundamental Global | GreenFirst Forest vs. GreenFirst Forest Products | GreenFirst Forest vs. Galaxy Gaming | GreenFirst Forest vs. OppFi Inc |
| Freedom Bank vs. National Capital Bank | Freedom Bank vs. Community Heritage Financial | Freedom Bank vs. Citizens Financial Corp | Freedom Bank vs. Bank of Idaho |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |