Correlation Between Greystone Logistics and Givaudan
Can any of the company-specific risk be diversified away by investing in both Greystone Logistics and Givaudan 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 Givaudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greystone Logistics and Givaudan SA ADR, you can compare the effects of market volatilities on Greystone Logistics and Givaudan 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 Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greystone Logistics and Givaudan.
Diversification Opportunities for Greystone Logistics and Givaudan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Greystone and Givaudan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Greystone Logistics and Givaudan SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA ADR 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 Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA ADR has no effect on the direction of Greystone Logistics i.e., Greystone Logistics and Givaudan go up and down completely randomly.
Pair Corralation between Greystone Logistics and Givaudan
Given the investment horizon of 90 days Greystone Logistics is expected to generate 3.24 times more return on investment than Givaudan. However, Greystone Logistics is 3.24 times more volatile than Givaudan SA ADR. It trades about 0.04 of its potential returns per unit of risk. Givaudan SA ADR is currently generating about 0.07 per unit of risk. If you would invest 78.00 in Greystone Logistics on August 31, 2024 and sell it today you would earn a total of 22.00 from holding Greystone Logistics or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greystone Logistics vs. Givaudan SA ADR
Performance |
| Timeline |
| Greystone Logistics |
| Givaudan SA ADR |
Greystone Logistics and Givaudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greystone Logistics and Givaudan
The main advantage of trading using opposite Greystone Logistics and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greystone Logistics position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.| Greystone Logistics vs. South32 Limited | Greystone Logistics vs. NioCorp Developments Ltd | Greystone Logistics vs. HUMANA INC | Greystone Logistics vs. SCOR PK |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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