Correlation Between GREI and Inspire Faithward

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

By analyzing existing cross correlation between GREI and Inspire Faithward Mid, you can compare the effects of market volatilities on GREI and Inspire Faithward 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 GREI with a short position of Inspire Faithward. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREI and Inspire Faithward.

Diversification Opportunities for GREI and Inspire Faithward

0.0

Correlation Coefficient

GREI  Inspire Faithward

Pay attention - limited upside

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

Pair Corralation between GREI and Inspire Faithward

If you would invest (100.00) in GREI on December 29, 2024 and sell it today you would earn a total of  100.00  from holding GREI or generate -100.0% return on investment over 90 days.

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

GREI  vs.  Inspire Faithward Mid

GREI

Risk-Adjusted Performance

Very Weak

Over the last 90 days GREI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, GREI is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Inspire Faithward Mid

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inspire Faithward Mid has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.

Pair Trading with GREI and Inspire Faithward

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

The idea behind GREI and Inspire Faithward Mid 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.