Correlation Between Greenhill and Netcapital
Can any of the company-specific risk be diversified away by investing in both Greenhill and Netcapital 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 Netcapital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenhill Co and Netcapital, you can compare the effects of market volatilities on Greenhill and Netcapital 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 Netcapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and Netcapital.
Diversification Opportunities for Greenhill and Netcapital
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greenhill and Netcapital is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Greenhill Co and Netcapital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netcapital 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 Netcapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netcapital has no effect on the direction of Greenhill i.e., Greenhill and Netcapital go up and down completely randomly.
Pair Corralation between Greenhill and Netcapital
If you would invest 1,473 in Greenhill Co on October 24, 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 | 5.56% |
| Values | Daily Returns |
Greenhill Co vs. Netcapital
Performance |
| Timeline |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Netcapital |
Greenhill and Netcapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenhill and Netcapital
The main advantage of trading using opposite Greenhill and Netcapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill position performs unexpectedly, Netcapital 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 Netcapital will offset losses from the drop in Netcapital's long position.| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Digital | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
| Netcapital vs. Applied Digital | Netcapital vs. Zhong Yang Financial | Netcapital vs. Magic Empire Global | Netcapital vs. Lazard |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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