Correlation Between Green Plains and Andersons
Can any of the company-specific risk be diversified away by investing in both Green Plains and Andersons 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 Green Plains and Andersons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Plains Renewable and The Andersons, you can compare the effects of market volatilities on Green Plains and Andersons 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 Green Plains with a short position of Andersons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Plains and Andersons.
Diversification Opportunities for Green Plains and Andersons
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Green and Andersons is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Green Plains Renewable and The Andersons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andersons and Green Plains 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 Green Plains Renewable are associated (or correlated) with Andersons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andersons has no effect on the direction of Green Plains i.e., Green Plains and Andersons go up and down completely randomly.
Pair Corralation between Green Plains and Andersons
Given the investment horizon of 90 days Green Plains Renewable is expected to generate 2.19 times more return on investment than Andersons. However, Green Plains is 2.19 times more volatile than The Andersons. It trades about 0.12 of its potential returns per unit of risk. The Andersons is currently generating about 0.2 per unit of risk. If you would invest 818.00 in Green Plains Renewable on July 20, 2025 and sell it today you would earn a total of 299.00 from holding Green Plains Renewable or generate 36.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Plains Renewable vs. The Andersons
Performance |
| Timeline |
| Green Plains Renewable |
| Andersons |
Green Plains and Andersons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Plains and Andersons
The main advantage of trading using opposite Green Plains and Andersons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Plains position performs unexpectedly, Andersons 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 Andersons will offset losses from the drop in Andersons' long position.| Green Plains vs. Lightwave Logic | Green Plains vs. Gevo Inc | Green Plains vs. Westlake Chemical Partners | Green Plains vs. Tronox Holdings PLC |
| Andersons vs. Ingles Markets Incorporated | Andersons vs. Universal | Andersons vs. Afya | Andersons vs. Fresh Del Monte |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |