Correlation Between Good Natured and Greif Bros
Can any of the company-specific risk be diversified away by investing in both Good Natured and Greif Bros 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 Good Natured and Greif Bros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between good natured Products and Greif Bros, you can compare the effects of market volatilities on Good Natured and Greif Bros 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 Good Natured with a short position of Greif Bros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Natured and Greif Bros.
Diversification Opportunities for Good Natured and Greif Bros
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Good and Greif is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding good natured Products and Greif Bros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif Bros and Good Natured 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 good natured Products are associated (or correlated) with Greif Bros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif Bros has no effect on the direction of Good Natured i.e., Good Natured and Greif Bros go up and down completely randomly.
Pair Corralation between Good Natured and Greif Bros
Assuming the 90 days horizon Good Natured is expected to generate 1.62 times less return on investment than Greif Bros. But when comparing it to its historical volatility, good natured Products is 1.19 times less risky than Greif Bros. It trades about 0.21 of its potential returns per unit of risk. Greif Bros is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 6,302 in Greif Bros on August 29, 2024 and sell it today you would earn a total of 878.00 from holding Greif Bros or generate 13.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
good natured Products vs. Greif Bros
Performance |
| Timeline |
| good natured Products |
| Greif Bros |
Good Natured and Greif Bros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Good Natured and Greif Bros
The main advantage of trading using opposite Good Natured and Greif Bros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good Natured position performs unexpectedly, Greif Bros 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 Greif Bros will offset losses from the drop in Greif Bros' long position.| Good Natured vs. DSS Inc | Good Natured vs. Myers Industries | Good Natured vs. O I Glass | Good Natured vs. Pactiv Evergreen |
| Greif Bros vs. Silgan Holdings | Greif Bros vs. AptarGroup | Greif Bros vs. Sonoco Products | Greif Bros vs. Graphic Packaging Holding |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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