Correlation Between Magnite and Greif,
Can any of the company-specific risk be diversified away by investing in both Magnite 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 Magnite and Greif, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnite and Greif, Inc, you can compare the effects of market volatilities on Magnite 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 Magnite with a short position of Greif,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnite and Greif,.
Diversification Opportunities for Magnite and Greif,
Very poor diversification
The 3 months correlation between Magnite and Greif, is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Magnite and Greif, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif, Inc and Magnite 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 Magnite 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 Magnite i.e., Magnite and Greif, go up and down completely randomly.
Pair Corralation between Magnite and Greif,
Given the investment horizon of 90 days Magnite is expected to generate 2.34 times more return on investment than Greif,. However, Magnite is 2.34 times more volatile than Greif, Inc. It trades about 0.09 of its potential returns per unit of risk. Greif, Inc is currently generating about 0.04 per unit of risk. If you would invest 795.00 in Magnite on September 14, 2024 and sell it today you would earn a total of 852.00 from holding Magnite or generate 107.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Magnite vs. Greif, Inc
Performance |
| Timeline |
| Magnite |
| Greif, Inc |
Magnite and Greif, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnite and Greif,
The main advantage of trading using opposite Magnite and Greif, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnite 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.| Magnite vs. Mirriad Advertising plc | Magnite vs. INEO Tech Corp | Magnite vs. Kidoz Inc | Magnite vs. Marchex |
| Greif, vs. Magnite | Greif, vs. Entravision Communications | Greif, vs. CarsalesCom Ltd ADR | Greif, vs. GEN Restaurant Group, |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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