Correlation Between Greenlight Capital and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Greenlight Capital and SCOR PK 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 Greenlight Capital and SCOR PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlight Capital Re and SCOR PK, you can compare the effects of market volatilities on Greenlight Capital and SCOR PK 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 Greenlight Capital with a short position of SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlight Capital and SCOR PK.
Diversification Opportunities for Greenlight Capital and SCOR PK
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenlight and SCOR is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Greenlight Capital Re and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK and Greenlight Capital 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 Greenlight Capital Re are associated (or correlated) with SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Greenlight Capital i.e., Greenlight Capital and SCOR PK go up and down completely randomly.
Pair Corralation between Greenlight Capital and SCOR PK
Given the investment horizon of 90 days Greenlight Capital Re is expected to generate 0.55 times more return on investment than SCOR PK. However, Greenlight Capital Re is 1.83 times less risky than SCOR PK. It trades about 0.08 of its potential returns per unit of risk. SCOR PK is currently generating about -0.01 per unit of risk. If you would invest 1,108 in Greenlight Capital Re on August 26, 2024 and sell it today you would earn a total of 399.00 from holding Greenlight Capital Re or generate 36.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Greenlight Capital Re vs. SCOR PK
Performance |
| Timeline |
| Greenlight Capital |
| SCOR PK |
Greenlight Capital and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlight Capital and SCOR PK
The main advantage of trading using opposite Greenlight Capital and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlight Capital position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Greenlight Capital vs. Reinsurance Group of | Greenlight Capital vs. Siriuspoint | Greenlight Capital vs. SCOR PK | Greenlight Capital vs. SiriusPoint |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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