Correlation Between Greenshift Corp and 345397A45

Can any of the company-specific risk be diversified away by investing in both Greenshift Corp and 345397A45 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 Greenshift Corp and 345397A45 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Greenshift Corp and Ford Motor Credit, you can compare the effects of market volatilities on Greenshift Corp and 345397A45 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 Greenshift Corp with a short position of 345397A45. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenshift Corp and 345397A45.

Diversification Opportunities for Greenshift Corp and 345397A45

-0.18

Correlation Coefficient

Greenshift Corp  345397A45

Good diversification

The 3 months correlation between Greenshift and 345397A45 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Greenshift Corp and Ford Motor Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor Credit and Greenshift 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 Greenshift Corp are associated (or correlated) with 345397A45. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor Credit has no effect on the direction of Greenshift Corp i.e., Greenshift Corp and 345397A45 go up and down completely randomly.

Pair Corralation between Greenshift Corp and 345397A45

If you would invest  12.00  in Greenshift Corp on January 16, 2025 and sell it today you would lose (7.00) from holding Greenshift Corp or give up 58.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Greenshift Corp  vs.  Ford Motor Credit

Greenshift Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Greenshift Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Greenshift Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ford Motor Credit

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ford Motor Credit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 345397A45 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Greenshift Corp and 345397A45

The main advantage of trading using opposite Greenshift Corp and 345397A45 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenshift Corp position performs unexpectedly, 345397A45 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 345397A45 will offset losses from the drop in 345397A45's long position.

The idea behind Greenshift Corp and Ford Motor Credit 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.