Correlation Between Greif Bros and Ever Glory
Can any of the company-specific risk be diversified away by investing in both Greif Bros and Ever Glory 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 Greif Bros and Ever Glory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greif Bros and Ever Glory International Group, you can compare the effects of market volatilities on Greif Bros and Ever Glory 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 Greif Bros with a short position of Ever Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif Bros and Ever Glory.
Diversification Opportunities for Greif Bros and Ever Glory
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Greif and Ever is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros and Ever Glory International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Glory Internati and Greif Bros 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 Greif Bros are associated (or correlated) with Ever Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Glory Internati has no effect on the direction of Greif Bros i.e., Greif Bros and Ever Glory go up and down completely randomly.
Pair Corralation between Greif Bros and Ever Glory
If you would invest 6,496 in Greif Bros on August 24, 2024 and sell it today you would earn a total of 619.50 from holding Greif Bros or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Greif Bros vs. Ever Glory International Group
Performance |
| Timeline |
| Greif Bros |
| Ever Glory Internati |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greif Bros and Ever Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greif Bros and Ever Glory
The main advantage of trading using opposite Greif Bros and Ever Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif Bros position performs unexpectedly, Ever Glory 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 Ever Glory will offset losses from the drop in Ever Glory's long position.| Greif Bros vs. Silgan Holdings | Greif Bros vs. AptarGroup | Greif Bros vs. Sonoco Products | Greif Bros vs. Graphic Packaging Holding |
| Ever Glory vs. Vita Coco | Ever Glory vs. Kaiser Aluminum | Ever Glory vs. Oatly Group AB | Ever Glory vs. Monster Beverage Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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