Correlation Between Gray Television and Greif
Can any of the company-specific risk be diversified away by investing in both Gray Television and Greif 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 Gray Television and Greif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gray Television and Greif Inc, you can compare the effects of market volatilities on Gray Television and Greif 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 Gray Television with a short position of Greif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gray Television and Greif.
Diversification Opportunities for Gray Television and Greif
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gray and Greif is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gray Television and Greif Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif Inc and Gray Television 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 Gray Television are associated (or correlated) with Greif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif Inc has no effect on the direction of Gray Television i.e., Gray Television and Greif go up and down completely randomly.
Pair Corralation between Gray Television and Greif
Assuming the 90 days horizon Gray Television is expected to generate 3.41 times more return on investment than Greif. However, Gray Television is 3.41 times more volatile than Greif Inc. It trades about 0.02 of its potential returns per unit of risk. Greif Inc is currently generating about 0.02 per unit of risk. If you would invest 1,046 in Gray Television on August 24, 2024 and sell it today you would lose (284.00) from holding Gray Television or give up 27.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gray Television vs. Greif Inc
Performance |
| Timeline |
| Gray Television |
| Greif Inc |
Gray Television and Greif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gray Television and Greif
The main advantage of trading using opposite Gray Television and Greif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gray Television position performs unexpectedly, Greif 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 Greif will offset losses from the drop in Greif's long position.| Gray Television vs. Haverty Furniture Companies | Gray Television vs. Liberty Global PLC | Gray Television vs. Gray Television | Gray Television vs. Greif Inc |
| Greif vs. Pactiv Evergreen | Greif vs. Myers Industries | Greif vs. Silgan Holdings | Greif vs. Sonoco Products |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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