Correlation Between Greenhill and Evercore Partners
Can any of the company-specific risk be diversified away by investing in both Greenhill and Evercore Partners 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 Greenhill and Evercore Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenhill Co and Evercore Partners, you can compare the effects of market volatilities on Greenhill and Evercore Partners 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 Greenhill with a short position of Evercore Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and Evercore Partners.
Diversification Opportunities for Greenhill and Evercore Partners
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greenhill and Evercore is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Greenhill Co and Evercore Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evercore Partners and Greenhill 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 Greenhill Co are associated (or correlated) with Evercore Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evercore Partners has no effect on the direction of Greenhill i.e., Greenhill and Evercore Partners go up and down completely randomly.
Pair Corralation between Greenhill and Evercore Partners
If you would invest 26,135 in Evercore Partners on August 29, 2024 and sell it today you would earn a total of 4,965 from holding Evercore Partners or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Greenhill Co vs. Evercore Partners
Performance |
| Timeline |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Evercore Partners |
Greenhill and Evercore Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenhill and Evercore Partners
The main advantage of trading using opposite Greenhill and Evercore Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill position performs unexpectedly, Evercore Partners 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 Evercore Partners will offset losses from the drop in Evercore Partners' long position.| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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