Correlation Between Greif Bros and Millennium Group
Can any of the company-specific risk be diversified away by investing in both Greif Bros and Millennium Group 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 Millennium Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greif Bros and Millennium Group International, you can compare the effects of market volatilities on Greif Bros and Millennium Group 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 Millennium Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif Bros and Millennium Group.
Diversification Opportunities for Greif Bros and Millennium Group
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greif and Millennium is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros and Millennium Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millennium Group Int 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 Millennium Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millennium Group Int has no effect on the direction of Greif Bros i.e., Greif Bros and Millennium Group go up and down completely randomly.
Pair Corralation between Greif Bros and Millennium Group
Considering the 90-day investment horizon Greif Bros is expected to generate 0.66 times more return on investment than Millennium Group. However, Greif Bros is 1.52 times less risky than Millennium Group. It trades about 0.32 of its potential returns per unit of risk. Millennium Group International is currently generating about -0.05 per unit of risk. If you would invest 6,302 in Greif Bros on August 27, 2024 and sell it today you would earn a total of 913.00 from holding Greif Bros or generate 14.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greif Bros vs. Millennium Group International
Performance |
| Timeline |
| Greif Bros |
| Millennium Group Int |
Greif Bros and Millennium Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greif Bros and Millennium Group
The main advantage of trading using opposite Greif Bros and Millennium Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif Bros position performs unexpectedly, Millennium Group 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 Millennium Group will offset losses from the drop in Millennium Group's long position.| Greif Bros vs. Silgan Holdings | Greif Bros vs. AptarGroup | Greif Bros vs. Sonoco Products | Greif Bros vs. Graphic Packaging Holding |
| Millennium Group vs. Algoma Steel Group | Millennium Group vs. Kaiser Aluminum | Millennium Group vs. Dave Busters Entertainment | Millennium Group vs. Emerson Radio |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |