Correlation Between Greenbrier Companies and Magplane Technology
Can any of the company-specific risk be diversified away by investing in both Greenbrier Companies and Magplane Technology 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 Magplane Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenbrier Companies and Magplane Technology, you can compare the effects of market volatilities on Greenbrier Companies and Magplane Technology 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 Magplane Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenbrier Companies and Magplane Technology.
Diversification Opportunities for Greenbrier Companies and Magplane Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greenbrier and Magplane is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greenbrier Companies and Magplane Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magplane Technology 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 Magplane Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magplane Technology has no effect on the direction of Greenbrier Companies i.e., Greenbrier Companies and Magplane Technology go up and down completely randomly.
Pair Corralation between Greenbrier Companies and Magplane Technology
If you would invest 5,253 in Greenbrier Companies on September 3, 2024 and sell it today you would earn a total of 1,588 from holding Greenbrier Companies or generate 30.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenbrier Companies vs. Magplane Technology
Performance |
| Timeline |
| Greenbrier Companies |
| Magplane Technology |
Greenbrier Companies and Magplane Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenbrier Companies and Magplane Technology
The main advantage of trading using opposite Greenbrier Companies and Magplane Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenbrier Companies position performs unexpectedly, Magplane Technology 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 Magplane Technology will offset losses from the drop in Magplane Technology's long position.| Greenbrier Companies vs. LB Foster | Greenbrier Companies vs. Freightcar America | Greenbrier Companies vs. Westinghouse Air Brake | Greenbrier Companies vs. CSX Corporation |
| Magplane Technology vs. Griffon | Magplane Technology vs. Wabash National | Magplane Technology vs. PACCAR Inc | Magplane Technology vs. Supercom |
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 CEOs Directory module to screen CEOs from public companies around the world.
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