Correlation Between Sisecam Resources and Green Plains

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

By analyzing existing cross correlation between Sisecam Resources LP and Green Plains Renewable, you can compare the effects of market volatilities on Sisecam Resources and Green Plains 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 Sisecam Resources with a short position of Green Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sisecam Resources and Green Plains.

Diversification Opportunities for Sisecam Resources and Green Plains

0.0

Correlation Coefficient

Sisecam Resources  Green Plains

Pay attention - limited upside

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

Pair Corralation between Sisecam Resources and Green Plains

If you would invest (100.00) in Sisecam Resources LP on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Sisecam Resources LP 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

Sisecam Resources LP  vs.  Green Plains Renewable

Sisecam Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sisecam Resources LP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Sisecam Resources is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Green Plains Renewable

Risk-Adjusted Performance

Very Weak

Over the last 90 days Green Plains Renewable 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 rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Sisecam Resources and Green Plains

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

The idea behind Sisecam Resources LP and Green Plains Renewable 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.