Correlation Between GreenFirst Forest and ArborGen Holdings
Can any of the company-specific risk be diversified away by investing in both GreenFirst Forest and ArborGen Holdings 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 GreenFirst Forest and ArborGen Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenFirst Forest Products and ArborGen Holdings Limited, you can compare the effects of market volatilities on GreenFirst Forest and ArborGen Holdings 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 GreenFirst Forest with a short position of ArborGen Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenFirst Forest and ArborGen Holdings.
Diversification Opportunities for GreenFirst Forest and ArborGen Holdings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GreenFirst and ArborGen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding GreenFirst Forest Products and ArborGen Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArborGen Holdings and GreenFirst Forest 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 GreenFirst Forest Products are associated (or correlated) with ArborGen Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArborGen Holdings has no effect on the direction of GreenFirst Forest i.e., GreenFirst Forest and ArborGen Holdings go up and down completely randomly.
Pair Corralation between GreenFirst Forest and ArborGen Holdings
Assuming the 90 days horizon GreenFirst Forest Products is expected to under-perform the ArborGen Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, GreenFirst Forest Products is 1.13 times less risky than ArborGen Holdings. The pink sheet trades about -0.17 of its potential returns per unit of risk. The ArborGen Holdings Limited is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 7.00 in ArborGen Holdings Limited on July 24, 2025 and sell it today you would lose (1.00) from holding ArborGen Holdings Limited or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenFirst Forest Products vs. ArborGen Holdings Limited
Performance |
| Timeline |
| GreenFirst Forest |
| ArborGen Holdings |
GreenFirst Forest and ArborGen Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenFirst Forest and ArborGen Holdings
The main advantage of trading using opposite GreenFirst Forest and ArborGen Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenFirst Forest position performs unexpectedly, ArborGen Holdings 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 ArborGen Holdings will offset losses from the drop in ArborGen Holdings' long position.| GreenFirst Forest vs. CNA Financial | GreenFirst Forest vs. High Yield Municipal Fund | GreenFirst Forest vs. Morningstar Unconstrained Allocation | GreenFirst Forest vs. Aeye Inc |
| ArborGen Holdings vs. Atico Mining | ArborGen Holdings vs. Arizona Lithium Limited | ArborGen Holdings vs. Denarius Silver Corp | ArborGen Holdings vs. Autris |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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