Correlation Between Greenhill and Interactive Brokers
Can any of the company-specific risk be diversified away by investing in both Greenhill and Interactive Brokers 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 Interactive Brokers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenhill Co and Interactive Brokers Group, you can compare the effects of market volatilities on Greenhill and Interactive Brokers 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 Interactive Brokers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and Interactive Brokers.
Diversification Opportunities for Greenhill and Interactive Brokers
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greenhill and Interactive is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Greenhill Co and Interactive Brokers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Brokers 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 Interactive Brokers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Brokers has no effect on the direction of Greenhill i.e., Greenhill and Interactive Brokers go up and down completely randomly.
Pair Corralation between Greenhill and Interactive Brokers
Considering the 90-day investment horizon Greenhill Co is expected to generate 5.63 times more return on investment than Interactive Brokers. However, Greenhill is 5.63 times more volatile than Interactive Brokers Group. It trades about 0.06 of its potential returns per unit of risk. Interactive Brokers Group is currently generating about 0.11 per unit of risk. If you would invest 952.00 in Greenhill Co on August 25, 2024 and sell it today you would earn a total of 521.00 from holding Greenhill Co or generate 54.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.99% |
| Values | Daily Returns |
Greenhill Co vs. Interactive Brokers Group
Performance |
| Timeline |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Interactive Brokers |
Greenhill and Interactive Brokers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenhill and Interactive Brokers
The main advantage of trading using opposite Greenhill and Interactive Brokers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill position performs unexpectedly, Interactive Brokers 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 Interactive Brokers will offset losses from the drop in Interactive Brokers' long position.| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
| Interactive Brokers vs. Sellas Life Sciences | Interactive Brokers vs. Ardelyx | Interactive Brokers vs. Sweetgreen | Interactive Brokers vs. Yum Brands |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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