Correlation Between Graf Global and Vine Hill
Can any of the company-specific risk be diversified away by investing in both Graf Global and Vine Hill 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 Graf Global and Vine Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graf Global Corp and Vine Hill Capital, you can compare the effects of market volatilities on Graf Global and Vine Hill 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 Graf Global with a short position of Vine Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graf Global and Vine Hill.
Diversification Opportunities for Graf Global and Vine Hill
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graf and Vine is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Graf Global Corp and Vine Hill Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vine Hill Capital and Graf Global 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 Graf Global Corp are associated (or correlated) with Vine Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vine Hill Capital has no effect on the direction of Graf Global i.e., Graf Global and Vine Hill go up and down completely randomly.
Pair Corralation between Graf Global and Vine Hill
Given the investment horizon of 90 days Graf Global is expected to generate 2.51 times less return on investment than Vine Hill. In addition to that, Graf Global is 2.25 times more volatile than Vine Hill Capital. It trades about 0.03 of its total potential returns per unit of risk. Vine Hill Capital is currently generating about 0.2 per unit of volatility. If you would invest 996.00 in Vine Hill Capital on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Vine Hill Capital or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 29.17% |
| Values | Daily Returns |
Graf Global Corp vs. Vine Hill Capital
Performance |
| Timeline |
| Graf Global Corp |
| Vine Hill Capital |
Graf Global and Vine Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graf Global and Vine Hill
The main advantage of trading using opposite Graf Global and Vine Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graf Global position performs unexpectedly, Vine Hill 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 Vine Hill will offset losses from the drop in Vine Hill's long position.| Graf Global vs. Olympic Steel | Graf Global vs. National CineMedia | Graf Global vs. Pool Corporation | Graf Global vs. Grocery Outlet Holding |
| Vine Hill vs. dMY Squared Technology | Vine Hill vs. DP Cap Acquisition | Vine Hill vs. PowerUp Acquisition Corp | Vine Hill vs. PowerUp Acquisition Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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