Correlation Between Greenhill and Piper Sandler
Can any of the company-specific risk be diversified away by investing in both Greenhill and Piper Sandler 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 Piper Sandler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenhill Co and Piper Sandler Companies, you can compare the effects of market volatilities on Greenhill and Piper Sandler 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 Piper Sandler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and Piper Sandler.
Diversification Opportunities for Greenhill and Piper Sandler
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenhill and Piper is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Greenhill Co and Piper Sandler Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piper Sandler Companies 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 Piper Sandler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piper Sandler Companies has no effect on the direction of Greenhill i.e., Greenhill and Piper Sandler go up and down completely randomly.
Pair Corralation between Greenhill and Piper Sandler
If you would invest 29,931 in Piper Sandler Companies on November 3, 2024 and sell it today you would earn a total of 1,783 from holding Piper Sandler Companies or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Greenhill Co vs. Piper Sandler Companies
Performance |
| Timeline |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Piper Sandler Companies |
Greenhill and Piper Sandler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenhill and Piper Sandler
The main advantage of trading using opposite Greenhill and Piper Sandler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill position performs unexpectedly, Piper Sandler 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 Piper Sandler will offset losses from the drop in Piper Sandler's long position.| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Digital | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
| Piper Sandler vs. Perella Weinberg Partners | Piper Sandler vs. Evercore Partners | Piper Sandler vs. Lazard | Piper Sandler vs. Moelis Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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