Correlation Between Greenfire Resources and Buhler Industries
Can any of the company-specific risk be diversified away by investing in both Greenfire Resources and Buhler Industries 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 Greenfire Resources and Buhler Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenfire Resources and Buhler Industries, you can compare the effects of market volatilities on Greenfire Resources and Buhler Industries 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 Greenfire Resources with a short position of Buhler Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenfire Resources and Buhler Industries.
Diversification Opportunities for Greenfire Resources and Buhler Industries
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenfire and Buhler is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Greenfire Resources and Buhler Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buhler Industries and Greenfire 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 Greenfire Resources are associated (or correlated) with Buhler Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buhler Industries has no effect on the direction of Greenfire Resources i.e., Greenfire Resources and Buhler Industries go up and down completely randomly.
Pair Corralation between Greenfire Resources and Buhler Industries
Assuming the 90 days trading horizon Greenfire Resources is expected to under-perform the Buhler Industries. In addition to that, Greenfire Resources is 1.44 times more volatile than Buhler Industries. It trades about -0.53 of its total potential returns per unit of risk. Buhler Industries is currently generating about 0.0 per unit of volatility. If you would invest 288.00 in Buhler Industries on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Buhler Industries or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Greenfire Resources vs. Buhler Industries
Performance |
Timeline |
Greenfire Resources |
Buhler Industries |
Greenfire Resources and Buhler Industries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Greenfire Resources and Buhler Industries
The main advantage of trading using opposite Greenfire Resources and Buhler Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenfire Resources position performs unexpectedly, Buhler Industries 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 Buhler Industries will offset losses from the drop in Buhler Industries' long position.Greenfire Resources vs. Canadian Natural Resources | Greenfire Resources vs. Tourmaline Oil Corp | Greenfire Resources vs. ARC Resources | Greenfire Resources vs. Ovintiv |
Buhler Industries vs. Exchange Income | Buhler Industries vs. Stella Jones | Buhler Industries vs. Superior Plus Corp | Buhler Industries vs. NFI Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |