Correlation Between Itafos Corp and GreenFirst Forest
Can any of the company-specific risk be diversified away by investing in both Itafos Corp and GreenFirst Forest 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 Itafos Corp and GreenFirst Forest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itafos Corp and GreenFirst Forest Products, you can compare the effects of market volatilities on Itafos Corp and GreenFirst Forest 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 Itafos Corp with a short position of GreenFirst Forest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itafos Corp and GreenFirst Forest.
Diversification Opportunities for Itafos Corp and GreenFirst Forest
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Itafos and GreenFirst is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Itafos Corp and GreenFirst Forest Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenFirst Forest and Itafos Corp 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 Itafos Corp are associated (or correlated) with GreenFirst Forest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenFirst Forest has no effect on the direction of Itafos Corp i.e., Itafos Corp and GreenFirst Forest go up and down completely randomly.
Pair Corralation between Itafos Corp and GreenFirst Forest
Assuming the 90 days trading horizon Itafos Corp is expected to generate 1.03 times more return on investment than GreenFirst Forest. However, Itafos Corp is 1.03 times more volatile than GreenFirst Forest Products. It trades about 0.11 of its potential returns per unit of risk. GreenFirst Forest Products is currently generating about -0.46 per unit of risk. If you would invest 163.00 in Itafos Corp on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Itafos Corp or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Itafos Corp vs. GreenFirst Forest Products
Performance |
| Timeline |
| Itafos Corp |
| GreenFirst Forest |
Itafos Corp and GreenFirst Forest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Itafos Corp and GreenFirst Forest
The main advantage of trading using opposite Itafos Corp and GreenFirst Forest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itafos Corp position performs unexpectedly, GreenFirst Forest 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 GreenFirst Forest will offset losses from the drop in GreenFirst Forest's long position.| Itafos Corp vs. McChip Resources | Itafos Corp vs. International Zeolite Corp | Itafos Corp vs. Highway 50 Gold |
| GreenFirst Forest vs. HUMANA INC | GreenFirst Forest vs. SCOR PK | GreenFirst Forest vs. Aquagold International | GreenFirst Forest vs. Thrivent High Yield |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets |