Correlation Between Netcapital and Greenhill
Can any of the company-specific risk be diversified away by investing in both Netcapital and Greenhill 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 Netcapital and Greenhill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netcapital and Greenhill Co, you can compare the effects of market volatilities on Netcapital and Greenhill 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 Netcapital with a short position of Greenhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netcapital and Greenhill.
Diversification Opportunities for Netcapital and Greenhill
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netcapital and Greenhill is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Netcapital and Greenhill Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenhill and Netcapital 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 Netcapital are associated (or correlated) with Greenhill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenhill has no effect on the direction of Netcapital i.e., Netcapital and Greenhill go up and down completely randomly.
Pair Corralation between Netcapital and Greenhill
Given the investment horizon of 90 days Netcapital is expected to under-perform the Greenhill. In addition to that, Netcapital is 40.51 times more volatile than Greenhill Co. It trades about -0.1 of its total potential returns per unit of risk. Greenhill Co is currently generating about 0.04 per unit of volatility. If you would invest 1,469 in Greenhill Co on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Greenhill Co or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 9.38% |
| Values | Daily Returns |
Netcapital vs. Greenhill Co
Performance |
| Timeline |
| Netcapital |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netcapital and Greenhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netcapital and Greenhill
The main advantage of trading using opposite Netcapital and Greenhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netcapital position performs unexpectedly, Greenhill 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 Greenhill will offset losses from the drop in Greenhill's long position.| Netcapital vs. PowerUp Acquisition Corp | Netcapital vs. Aurora Innovation | Netcapital vs. HUMANA INC | Netcapital vs. Aquagold International |
| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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