Correlation Between Greif Bros and NEXE Innovations
Can any of the company-specific risk be diversified away by investing in both Greif Bros and NEXE Innovations 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 NEXE Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greif Bros and NEXE Innovations, you can compare the effects of market volatilities on Greif Bros and NEXE Innovations 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 NEXE Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif Bros and NEXE Innovations.
Diversification Opportunities for Greif Bros and NEXE Innovations
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greif and NEXE is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros and NEXE Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXE Innovations 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 NEXE Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXE Innovations has no effect on the direction of Greif Bros i.e., Greif Bros and NEXE Innovations go up and down completely randomly.
Pair Corralation between Greif Bros and NEXE Innovations
Considering the 90-day investment horizon Greif Bros is expected to generate 0.58 times more return on investment than NEXE Innovations. However, Greif Bros is 1.71 times less risky than NEXE Innovations. It trades about 0.31 of its potential returns per unit of risk. NEXE Innovations is currently generating about -0.15 per unit of risk. If you would invest 6,244 in Greif Bros on September 1, 2024 and sell it today you would earn a total of 859.00 from holding Greif Bros or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Greif Bros vs. NEXE Innovations
Performance |
| Timeline |
| Greif Bros |
| NEXE Innovations |
Greif Bros and NEXE Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greif Bros and NEXE Innovations
The main advantage of trading using opposite Greif Bros and NEXE Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif Bros position performs unexpectedly, NEXE Innovations 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 NEXE Innovations will offset losses from the drop in NEXE Innovations' long position.| Greif Bros vs. Silgan Holdings | Greif Bros vs. AptarGroup | Greif Bros vs. Sonoco Products | Greif Bros vs. Graphic Packaging Holding |
| NEXE Innovations vs. Packaging Corp of | NEXE Innovations vs. International Paper | NEXE Innovations vs. Ball Corporation | NEXE Innovations vs. Amcor plc |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stocks Directory Find actively traded stocks across global markets |