Correlation Between Greif Bros and O I
Can any of the company-specific risk be diversified away by investing in both Greif Bros and O I 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 O I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greif Bros and O I Glass, you can compare the effects of market volatilities on Greif Bros and O I 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 O I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif Bros and O I.
Diversification Opportunities for Greif Bros and O I
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greif and O I is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass 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 O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of Greif Bros i.e., Greif Bros and O I go up and down completely randomly.
Pair Corralation between Greif Bros and O I
Considering the 90-day investment horizon Greif Bros is expected to generate 0.61 times more return on investment than O I. However, Greif Bros is 1.64 times less risky than O I. It trades about 0.32 of its potential returns per unit of risk. O I Glass is currently generating about 0.04 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greif Bros vs. O I Glass
Performance |
| Timeline |
| Greif Bros |
| O I Glass |
Greif Bros and O I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greif Bros and O I
The main advantage of trading using opposite Greif Bros and O I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif Bros position performs unexpectedly, O I 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 O I will offset losses from the drop in O I's long position.| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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