Correlation Between Greenhill and MarketAxess Holdings
Can any of the company-specific risk be diversified away by investing in both Greenhill and MarketAxess Holdings 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 MarketAxess Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenhill Co and MarketAxess Holdings, you can compare the effects of market volatilities on Greenhill and MarketAxess Holdings 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 MarketAxess Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and MarketAxess Holdings.
Diversification Opportunities for Greenhill and MarketAxess Holdings
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greenhill and MarketAxess is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Greenhill Co and MarketAxess Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarketAxess Holdings 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 MarketAxess Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarketAxess Holdings has no effect on the direction of Greenhill i.e., Greenhill and MarketAxess Holdings go up and down completely randomly.
Pair Corralation between Greenhill and MarketAxess Holdings
If you would invest 1,473 in Greenhill Co on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Greenhill Co or generate 0.0% 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. MarketAxess Holdings
Performance |
| Timeline |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MarketAxess Holdings |
Greenhill and MarketAxess Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenhill and MarketAxess Holdings
The main advantage of trading using opposite Greenhill and MarketAxess Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill position performs unexpectedly, MarketAxess Holdings 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 MarketAxess Holdings will offset losses from the drop in MarketAxess Holdings' long position.| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
| MarketAxess Holdings vs. Interactive Brokers Group | MarketAxess Holdings vs. Evercore Partners | MarketAxess Holdings vs. PJT Partners | MarketAxess Holdings vs. LPL Financial Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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