Correlation Between Greystone Logistics and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both Greystone Logistics and Advantage Solutions 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 Greystone Logistics and Advantage Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greystone Logistics and Advantage Solutions, you can compare the effects of market volatilities on Greystone Logistics and Advantage Solutions 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 Greystone Logistics with a short position of Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greystone Logistics and Advantage Solutions.
Diversification Opportunities for Greystone Logistics and Advantage Solutions
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greystone and Advantage is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Greystone Logistics and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions and Greystone Logistics 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 Greystone Logistics are associated (or correlated) with Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Greystone Logistics i.e., Greystone Logistics and Advantage Solutions go up and down completely randomly.
Pair Corralation between Greystone Logistics and Advantage Solutions
Given the investment horizon of 90 days Greystone Logistics is expected to generate 8.83 times less return on investment than Advantage Solutions. But when comparing it to its historical volatility, Greystone Logistics is 4.82 times less risky than Advantage Solutions. It trades about 0.03 of its potential returns per unit of risk. Advantage Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9.05 in Advantage Solutions on September 12, 2024 and sell it today you would lose (7.25) from holding Advantage Solutions or give up 80.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.07% |
| Values | Daily Returns |
Greystone Logistics vs. Advantage Solutions
Performance |
| Timeline |
| Greystone Logistics |
| Advantage Solutions |
Greystone Logistics and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greystone Logistics and Advantage Solutions
The main advantage of trading using opposite Greystone Logistics and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greystone Logistics position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| Greystone Logistics vs. Advantage Solutions | Greystone Logistics vs. Atlas Corp | Greystone Logistics vs. PureCycle Technologies | Greystone Logistics vs. WM Technology |
| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream | Advantage Solutions vs. HUMANA INC |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |