Correlation Between Greenhill and MBIA
Can any of the company-specific risk be diversified away by investing in both Greenhill and MBIA 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 MBIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenhill Co and MBIA Inc, you can compare the effects of market volatilities on Greenhill and MBIA 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 MBIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and MBIA.
Diversification Opportunities for Greenhill and MBIA
Weak diversification
The 3 months correlation between Greenhill and MBIA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Greenhill Co and MBIA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBIA Inc 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 MBIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBIA Inc has no effect on the direction of Greenhill i.e., Greenhill and MBIA go up and down completely randomly.
Pair Corralation between Greenhill and MBIA
If you would invest 378.00 in MBIA Inc on August 27, 2024 and sell it today you would earn a total of 325.00 from holding MBIA Inc or generate 85.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Greenhill Co vs. MBIA Inc
Performance |
| Timeline |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MBIA Inc |
Greenhill and MBIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenhill and MBIA
The main advantage of trading using opposite Greenhill and MBIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill position performs unexpectedly, MBIA 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 MBIA will offset losses from the drop in MBIA's long position.| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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