Correlation Between Winmark and Green River
Can any of the company-specific risk be diversified away by investing in both Winmark and Green River 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 Winmark and Green River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winmark and Green River Gold, you can compare the effects of market volatilities on Winmark and Green River 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 Winmark with a short position of Green River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winmark and Green River.
Diversification Opportunities for Winmark and Green River
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Winmark and Green is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Winmark and Green River Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green River Gold and Winmark 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 Winmark are associated (or correlated) with Green River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green River Gold has no effect on the direction of Winmark i.e., Winmark and Green River go up and down completely randomly.
Pair Corralation between Winmark and Green River
Given the investment horizon of 90 days Winmark is expected to generate 8.51 times less return on investment than Green River. But when comparing it to its historical volatility, Winmark is 12.61 times less risky than Green River. It trades about 0.07 of its potential returns per unit of risk. Green River Gold is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3.10 in Green River Gold on September 1, 2024 and sell it today you would lose (2.52) from holding Green River Gold or give up 81.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Winmark vs. Green River Gold
Performance |
| Timeline |
| Winmark |
| Green River Gold |
Winmark and Green River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winmark and Green River
The main advantage of trading using opposite Winmark and Green River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winmark position performs unexpectedly, Green River 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 Green River will offset losses from the drop in Green River's long position.| Winmark vs. Mesa Laboratories | Winmark vs. Utah Medical Products | Winmark vs. Weyco Group | Winmark vs. Diamond Hill Investment |
| Green River vs. Ulta Beauty | Green River vs. Williams Sonoma | Green River vs. Dicks Sporting Goods | Green River vs. Best Buy Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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