Correlation Between Greenhill and Top KingWin
Can any of the company-specific risk be diversified away by investing in both Greenhill and Top KingWin 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 Top KingWin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenhill Co and Top KingWin Ltd, you can compare the effects of market volatilities on Greenhill and Top KingWin 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 Top KingWin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and Top KingWin.
Diversification Opportunities for Greenhill and Top KingWin
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenhill and Top is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Greenhill Co and Top KingWin Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top KingWin 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 Top KingWin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top KingWin has no effect on the direction of Greenhill i.e., Greenhill and Top KingWin go up and down completely randomly.
Pair Corralation between Greenhill and Top KingWin
If you would invest 50.00 in Top KingWin Ltd on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Top KingWin Ltd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenhill Co vs. Top KingWin Ltd
Performance |
| Timeline |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Top KingWin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Greenhill and Top KingWin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenhill and Top KingWin
The main advantage of trading using opposite Greenhill and Top KingWin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill position performs unexpectedly, Top KingWin 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 Top KingWin will offset losses from the drop in Top KingWin's long position.| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
| Top KingWin vs. SL Green Realty | Top KingWin vs. LENSAR Inc | Top KingWin vs. The Joint Corp | Top KingWin vs. United Homes Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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