Correlation Between GREEN PLAINS and Hyrican Informationssyst

Can any of the company-specific risk be diversified away by investing in both GREEN PLAINS and Hyrican Informationssyst 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 GREEN PLAINS and Hyrican Informationssyst into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GREEN PLAINS and Hyrican Informationssysteme Aktiengesellschaft, you can compare the effects of market volatilities on GREEN PLAINS and Hyrican Informationssyst 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 GREEN PLAINS with a short position of Hyrican Informationssyst. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREEN PLAINS and Hyrican Informationssyst.

Diversification Opportunities for GREEN PLAINS and Hyrican Informationssyst

-0.63

Correlation Coefficient

GREEN PLAINS  Hyrican Informationssyst

Excellent diversification

The 3 months correlation between GREEN and Hyrican is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding GREEN PLAINS and Hyrican Informationssysteme Ak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyrican Informationssyst and GREEN PLAINS 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 GREEN PLAINS are associated (or correlated) with Hyrican Informationssyst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyrican Informationssyst has no effect on the direction of GREEN PLAINS i.e., GREEN PLAINS and Hyrican Informationssyst go up and down completely randomly.

Pair Corralation between GREEN PLAINS and Hyrican Informationssyst

Assuming the 90 days trading horizon GREEN PLAINS is expected to under-perform the Hyrican Informationssyst. In addition to that, GREEN PLAINS is 8.29 times more volatile than Hyrican Informationssysteme Aktiengesellschaft. It trades about -0.03 of its total potential returns per unit of risk. Hyrican Informationssysteme Aktiengesellschaft is currently generating about -0.19 per unit of volatility. If you would invest  530.00  in Hyrican Informationssysteme Aktiengesellschaft on October 9, 2024 and sell it today you would lose (10.00) from holding Hyrican Informationssysteme Aktiengesellschaft or give up 1.89% of portfolio value over 90 days.

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

GREEN PLAINS  vs.  Hyrican Informationssysteme Ak

GREEN PLAINS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GREEN PLAINS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Hyrican Informationssyst

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hyrican Informationssysteme Aktiengesellschaft are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Hyrican Informationssyst may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with GREEN PLAINS and Hyrican Informationssyst

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

The idea behind GREEN PLAINS and Hyrican Informationssysteme Aktiengesellschaft 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.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.