Correlation Between Greif Bros and Greif
Can any of the company-specific risk be diversified away by investing in both Greif Bros and Greif 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 Greif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greif Bros and Greif Inc, you can compare the effects of market volatilities on Greif Bros and Greif 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 Greif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif Bros and Greif.
Diversification Opportunities for Greif Bros and Greif
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Greif and Greif is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros and Greif Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif Inc 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 Greif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif Inc has no effect on the direction of Greif Bros i.e., Greif Bros and Greif go up and down completely randomly.
Pair Corralation between Greif Bros and Greif
Considering the 90-day investment horizon Greif Bros is expected to generate 1.1 times more return on investment than Greif. However, Greif Bros is 1.1 times more volatile than Greif Inc. It trades about 0.01 of its potential returns per unit of risk. Greif Inc is currently generating about -0.02 per unit of risk. If you would invest 6,239 in Greif Bros on November 1, 2024 and sell it today you would lose (6.00) from holding Greif Bros or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greif Bros vs. Greif Inc
Performance |
| Timeline |
| Greif Bros |
| Greif Inc |
Greif Bros and Greif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greif Bros and Greif
The main advantage of trading using opposite Greif Bros and Greif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif Bros position performs unexpectedly, Greif 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 will offset losses from the drop in Greif's long position.| Greif Bros vs. Silgan Holdings | Greif Bros vs. AptarGroup | Greif Bros vs. Sonoco Products | Greif Bros vs. Graphic Packaging Holding |
| Greif vs. Pactiv Evergreen | Greif vs. Myers Industries | Greif vs. Silgan Holdings | Greif vs. Sonoco Products |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |