Correlation Between GreenSky and Swedish Match

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GreenSky and Swedish Match 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 GreenSky and Swedish Match into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenSky and Swedish Match ADR, you can compare the effects of market volatilities on GreenSky and Swedish Match 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 GreenSky with a short position of Swedish Match. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenSky and Swedish Match.

Diversification Opportunities for GreenSky and Swedish Match

  Correlation Coefficient

Very good diversification

The 3 months correlation between GreenSky and Swedish is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding GreenSky Inc and Swedish Match ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedish Match ADR and GreenSky 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 GreenSky are associated (or correlated) with Swedish Match. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedish Match ADR has no effect on the direction of GreenSky i.e., GreenSky and Swedish Match go up and down completely randomly.

Pair Corralation between GreenSky and Swedish Match

If you would invest  1,034  in Swedish Match ADR on August 28, 2022 and sell it today you would earn a total of  65.00  from holding Swedish Match ADR or generate 6.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

GreenSky Inc  vs.  Swedish Match ADR

 Performance (%) 
GreenSky Performance
0 of 100
Over the last 90 days GreenSky has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking signals, GreenSky is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Swedish Match ADR 
Swedish Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Swedish Match ADR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly sluggish basic indicators, Swedish Match may actually be approaching a critical reversion point that can send shares even higher in December 2022.

Swedish Price Channel

GreenSky and Swedish Match Volatility Contrast

   Predicted Return Density   

Pair Trading with GreenSky and Swedish Match

The main advantage of trading using opposite GreenSky and Swedish Match positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenSky position performs unexpectedly, Swedish Match 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 Swedish Match will offset losses from the drop in Swedish Match's long position.
GreenSky vs. Vmware Inc
GreenSky vs. Synopsys
GreenSky vs. Verisign
GreenSky vs. Oracle Corp
The idea behind GreenSky and Swedish Match ADR 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.
Swedish Match vs. Philip Morris International
Swedish Match vs. Altria 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets