Correlation Between Greenville Federal and Structured Products

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

By analyzing existing cross correlation between Greenville Federal Financial and Structured Products Corp, you can compare the effects of market volatilities on Greenville Federal and Structured Products 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 Greenville Federal with a short position of Structured Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenville Federal and Structured Products.

Diversification Opportunities for Greenville Federal and Structured Products

-0.26

Correlation Coefficient

Greenville Federal  Structured Products

Very good diversification

The 3 months correlation between Greenville and Structured is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Greenville Federal Financial and Structured Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structured Products Corp and Greenville Federal 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 Greenville Federal Financial are associated (or correlated) with Structured Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structured Products Corp has no effect on the direction of Greenville Federal i.e., Greenville Federal and Structured Products go up and down completely randomly.

Pair Corralation between Greenville Federal and Structured Products

Given the investment horizon of 90 days Greenville Federal Financial is expected to under-perform the Structured Products. In addition to that, Greenville Federal is 1.4 times more volatile than Structured Products Corp. It trades about 0.0 of its total potential returns per unit of risk. Structured Products Corp is currently generating about 0.04 per unit of volatility. If you would invest  2,842  in Structured Products Corp on October 5, 2024 and sell it today you would earn a total of  68.00  from holding Structured Products Corp or generate 2.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Greenville Federal Financial  vs.  Structured Products Corp

Greenville Federal

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greenville Federal Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Greenville Federal is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Structured Products Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Structured Products Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Structured Products is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Greenville Federal and Structured Products

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

The idea behind Greenville Federal Financial and Structured Products Corp 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 Valuation module to check real value of public entities based on technical and fundamental data.