Correlation Between Greif, and Magnite
Can any of the company-specific risk be diversified away by investing in both Greif, and Magnite 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, and Magnite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greif, Inc and Magnite, you can compare the effects of market volatilities on Greif, and Magnite 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, with a short position of Magnite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif, and Magnite.
Diversification Opportunities for Greif, and Magnite
Very poor diversification
The 3 months correlation between Greif, and Magnite is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Greif, Inc and Magnite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnite and Greif, 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, Inc are associated (or correlated) with Magnite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnite has no effect on the direction of Greif, i.e., Greif, and Magnite go up and down completely randomly.
Pair Corralation between Greif, and Magnite
Given the investment horizon of 90 days Greif, Inc is expected to generate 0.41 times more return on investment than Magnite. However, Greif, Inc is 2.43 times less risky than Magnite. It trades about 0.05 of its potential returns per unit of risk. Magnite is currently generating about -0.02 per unit of risk. If you would invest 7,275 in Greif, Inc on September 14, 2024 and sell it today you would earn a total of 77.00 from holding Greif, Inc or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greif, Inc vs. Magnite
Performance |
| Timeline |
| Greif, Inc |
| Magnite |
Greif, and Magnite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greif, and Magnite
The main advantage of trading using opposite Greif, and Magnite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif, position performs unexpectedly, Magnite 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 Magnite will offset losses from the drop in Magnite's long position.| Greif, vs. Magnite | Greif, vs. Entravision Communications | Greif, vs. CarsalesCom Ltd ADR | Greif, vs. GEN Restaurant Group, |
| Magnite vs. Mirriad Advertising plc | Magnite vs. INEO Tech Corp | Magnite vs. Kidoz Inc | Magnite vs. Marchex |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |