Correlation Between Greenbrier Companies and Guangshen Railway
Can any of the company-specific risk be diversified away by investing in both Greenbrier Companies and Guangshen Railway 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 Greenbrier Companies and Guangshen Railway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenbrier Companies and Guangshen Railway, you can compare the effects of market volatilities on Greenbrier Companies and Guangshen Railway 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 Greenbrier Companies with a short position of Guangshen Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenbrier Companies and Guangshen Railway.
Diversification Opportunities for Greenbrier Companies and Guangshen Railway
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenbrier and Guangshen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Greenbrier Companies and Guangshen Railway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangshen Railway and Greenbrier Companies 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 Greenbrier Companies are associated (or correlated) with Guangshen Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangshen Railway has no effect on the direction of Greenbrier Companies i.e., Greenbrier Companies and Guangshen Railway go up and down completely randomly.
Pair Corralation between Greenbrier Companies and Guangshen Railway
If you would invest 5,888 in Greenbrier Companies on September 5, 2024 and sell it today you would earn a total of 937.00 from holding Greenbrier Companies or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenbrier Companies vs. Guangshen Railway
Performance |
| Timeline |
| Greenbrier Companies |
| Guangshen Railway |
Greenbrier Companies and Guangshen Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenbrier Companies and Guangshen Railway
The main advantage of trading using opposite Greenbrier Companies and Guangshen Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenbrier Companies position performs unexpectedly, Guangshen Railway 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 Guangshen Railway will offset losses from the drop in Guangshen Railway's long position.| Greenbrier Companies vs. LB Foster | Greenbrier Companies vs. Freightcar America | Greenbrier Companies vs. Westinghouse Air Brake | Greenbrier Companies vs. CSX Corporation |
| Guangshen Railway vs. Trinity Industries | Guangshen Railway vs. CSX Corporation | Guangshen Railway vs. Norfolk Southern | Guangshen Railway vs. Greenbrier Companies |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |