Correlation Between Vodka Brands and Greenfire Resources
Can any of the company-specific risk be diversified away by investing in both Vodka Brands and Greenfire Resources 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 Vodka Brands and Greenfire Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vodka Brands Corp and Greenfire Resources, you can compare the effects of market volatilities on Vodka Brands and Greenfire Resources 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 Vodka Brands with a short position of Greenfire Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vodka Brands and Greenfire Resources.
Diversification Opportunities for Vodka Brands and Greenfire Resources
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vodka and Greenfire is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Vodka Brands Corp and Greenfire Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenfire Resources and Vodka Brands 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 Vodka Brands Corp are associated (or correlated) with Greenfire Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenfire Resources has no effect on the direction of Vodka Brands i.e., Vodka Brands and Greenfire Resources go up and down completely randomly.
Pair Corralation between Vodka Brands and Greenfire Resources
Given the investment horizon of 90 days Vodka Brands Corp is expected to generate 0.57 times more return on investment than Greenfire Resources. However, Vodka Brands Corp is 1.74 times less risky than Greenfire Resources. It trades about -0.22 of its potential returns per unit of risk. Greenfire Resources is currently generating about -0.57 per unit of risk. If you would invest 112.00 in Vodka Brands Corp on September 25, 2024 and sell it today you would lose (5.00) from holding Vodka Brands Corp or give up 4.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Vodka Brands Corp vs. Greenfire Resources
Performance |
Timeline |
Vodka Brands Corp |
Greenfire Resources |
Vodka Brands and Greenfire Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vodka Brands and Greenfire Resources
The main advantage of trading using opposite Vodka Brands and Greenfire Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vodka Brands position performs unexpectedly, Greenfire Resources 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 Greenfire Resources will offset losses from the drop in Greenfire Resources' long position.Vodka Brands vs. Brown Forman | Vodka Brands vs. Brown Forman | Vodka Brands vs. Eastside Distilling | Vodka Brands vs. Diageo PLC ADR |
Greenfire Resources vs. Vodka Brands Corp | Greenfire Resources vs. SNDL Inc | Greenfire Resources vs. Willamette Valley Vineyards | Greenfire Resources vs. BBB Foods |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |