Correlation Between GEN Restaurant and Greif,
Can any of the company-specific risk be diversified away by investing in both GEN Restaurant and Greif, 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 GEN Restaurant and Greif, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEN Restaurant Group, and Greif, Inc, you can compare the effects of market volatilities on GEN Restaurant and Greif, 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 GEN Restaurant with a short position of Greif,. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Greif,.
Diversification Opportunities for GEN Restaurant and Greif,
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEN and Greif, is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, and Greif, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif, Inc and GEN Restaurant 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 GEN Restaurant Group, are associated (or correlated) with Greif,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif, Inc has no effect on the direction of GEN Restaurant i.e., GEN Restaurant and Greif, go up and down completely randomly.
Pair Corralation between GEN Restaurant and Greif,
Given the investment horizon of 90 days GEN Restaurant Group, is expected to generate 2.58 times more return on investment than Greif,. However, GEN Restaurant is 2.58 times more volatile than Greif, Inc. It trades about 0.03 of its potential returns per unit of risk. Greif, Inc is currently generating about 0.04 per unit of risk. If you would invest 725.00 in GEN Restaurant Group, on September 14, 2024 and sell it today you would earn a total of 61.00 from holding GEN Restaurant Group, or generate 8.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
GEN Restaurant Group, vs. Greif, Inc
Performance |
| Timeline |
| GEN Restaurant Group, |
| Greif, Inc |
GEN Restaurant and Greif, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEN Restaurant and Greif,
The main advantage of trading using opposite GEN Restaurant and Greif, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant position performs unexpectedly, Greif, 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 Greif, will offset losses from the drop in Greif,'s long position.The idea behind GEN Restaurant Group, and Greif, Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Greif, vs. Magnite | Greif, vs. Entravision Communications | Greif, vs. CarsalesCom Ltd ADR | Greif, vs. GEN Restaurant Group, |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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