Correlation Between Greenspring Fund and State Street

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

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

Diversification Opportunities for Greenspring Fund and State Street

0.17

Correlation Coefficient

Greenspring Fund  State Street

Average diversification

The 3 months correlation between Greenspring and State is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail and State Street Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Global and Greenspring Fund 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 Greenspring Fund Retail are associated (or correlated) with State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Global has no effect on the direction of Greenspring Fund i.e., Greenspring Fund and State Street go up and down completely randomly.

Pair Corralation between Greenspring Fund and State Street

Assuming the 90 days horizon Greenspring Fund Retail is expected to under-perform the State Street. In addition to that, Greenspring Fund is 2.21 times more volatile than State Street Global. It trades about -0.08 of its total potential returns per unit of risk. State Street Global is currently generating about 0.09 per unit of volatility. If you would invest  12,672  in State Street Global on September 10, 2025 and sell it today you would earn a total of  512.00  from holding State Street Global or generate 4.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Greenspring Fund Retail  vs.  State Street Global

Greenspring Fund Retail

Risk-Adjusted Performance

Weakest

Over the last 90 days Greenspring Fund Retail has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

State Street Global

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in State Street Global are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, State Street is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Greenspring Fund and State Street

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

The idea behind Greenspring Fund Retail and State Street Global 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.