Correlation Between Pro Blend and Greenspring Fund

Can any of the company-specific risk be diversified away by investing in both Pro Blend and Greenspring Fund 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 Pro Blend and Greenspring Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pro Blend Servative Term and Greenspring Fund Retail, you can compare the effects of market volatilities on Pro Blend and Greenspring Fund 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 Pro Blend with a short position of Greenspring Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Blend and Greenspring Fund.

Diversification Opportunities for Pro Blend and Greenspring Fund

0.84

Correlation Coefficient

Pro Blend  Greenspring Fund

Very poor diversification

The 3 months correlation between Pro and Greenspring is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Servative Term and Greenspring Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenspring Fund Retail and Pro Blend 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 Pro Blend Servative Term are associated (or correlated) with Greenspring Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenspring Fund Retail has no effect on the direction of Pro Blend i.e., Pro Blend and Greenspring Fund go up and down completely randomly.

Pair Corralation between Pro Blend and Greenspring Fund

Assuming the 90 days horizon Pro Blend is expected to generate 3.68 times less return on investment than Greenspring Fund. But when comparing it to its historical volatility, Pro Blend Servative Term is 3.02 times less risky than Greenspring Fund. It trades about 0.15 of its potential returns per unit of risk. Greenspring Fund Retail is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,448  in Greenspring Fund Retail on May 3, 2025 and sell it today you would earn a total of  224.00  from holding Greenspring Fund Retail or generate 9.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Pro Blend Servative Term  vs.  Greenspring Fund Retail

Pro Blend Servative

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pro Blend Servative Term are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pro Blend is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Greenspring Fund Retail

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Greenspring Fund Retail are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Greenspring Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Pro Blend and Greenspring Fund

The main advantage of trading using opposite Pro Blend and Greenspring Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Blend position performs unexpectedly, Greenspring Fund 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 Greenspring Fund will offset losses from the drop in Greenspring Fund's long position.

The idea behind Pro Blend Servative Term and Greenspring Fund Retail pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.