Correlation Between GRIT Real and Freeport McMoRan

Can any of the company-specific risk be diversified away by investing in both GRIT Real and Freeport McMoRan 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 GRIT Real and Freeport McMoRan into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GRIT Real Estate and Freeport McMoRan, you can compare the effects of market volatilities on GRIT Real and Freeport McMoRan 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 GRIT Real with a short position of Freeport McMoRan. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIT Real and Freeport McMoRan.

Diversification Opportunities for GRIT Real and Freeport McMoRan

0.0

Correlation Coefficient

GRIT Real  Freeport McMoRan

Pay attention - limited upside

The 3 months correlation between GRIT and Freeport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GRIT Real Estate and Freeport McMoRan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freeport McMoRan and GRIT Real 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 GRIT Real Estate are associated (or correlated) with Freeport McMoRan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freeport McMoRan has no effect on the direction of GRIT Real i.e., GRIT Real and Freeport McMoRan go up and down completely randomly.

Pair Corralation between GRIT Real and Freeport McMoRan

If you would invest  0.00  in GRIT Real Estate on October 5, 2024 and sell it today you would earn a total of  0.00  from holding GRIT Real Estate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

GRIT Real Estate  vs.  Freeport McMoRan

GRIT Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GRIT Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, GRIT Real is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Freeport McMoRan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Freeport McMoRan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain 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.

Pair Trading with GRIT Real and Freeport McMoRan

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

The idea behind GRIT Real Estate and Freeport McMoRan 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.