Correlation Between Greif Bros and Leisure Fund
Can any of the company-specific risk be diversified away by investing in both Greif Bros and Leisure Fund 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 Leisure Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greif Bros and Leisure Fund Investor, you can compare the effects of market volatilities on Greif Bros and Leisure Fund 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 Leisure Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif Bros and Leisure Fund.
Diversification Opportunities for Greif Bros and Leisure Fund
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Greif and Leisure is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros and Leisure Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leisure Fund Investor 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 Leisure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leisure Fund Investor has no effect on the direction of Greif Bros i.e., Greif Bros and Leisure Fund go up and down completely randomly.
Pair Corralation between Greif Bros and Leisure Fund
Considering the 90-day investment horizon Greif Bros is expected to generate 2.97 times more return on investment than Leisure Fund. However, Greif Bros is 2.97 times more volatile than Leisure Fund Investor. It trades about 0.29 of its potential returns per unit of risk. Leisure Fund Investor is currently generating about 0.53 per unit of risk. If you would invest 6,290 in Greif Bros on September 2, 2024 and sell it today you would earn a total of 813.00 from holding Greif Bros or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greif Bros vs. Leisure Fund Investor
Performance |
| Timeline |
| Greif Bros |
| Leisure Fund Investor |
Greif Bros and Leisure Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greif Bros and Leisure Fund
The main advantage of trading using opposite Greif Bros and Leisure Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif Bros position performs unexpectedly, Leisure Fund 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 Leisure Fund will offset losses from the drop in Leisure Fund's long position.| Greif Bros vs. Silgan Holdings | Greif Bros vs. AptarGroup | Greif Bros vs. Sonoco Products | Greif Bros vs. Graphic Packaging Holding |
| Leisure Fund vs. Retailing Fund Investor | Leisure Fund vs. Financial Services Fund | Leisure Fund vs. Banking Fund Investor | Leisure Fund vs. Health Care Fund |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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