Correlation Between Colas SA and Greenlight Capital
Can any of the company-specific risk be diversified away by investing in both Colas SA and Greenlight Capital 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 Colas SA and Greenlight Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colas SA and Greenlight Capital Re, you can compare the effects of market volatilities on Colas SA and Greenlight Capital 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 Colas SA with a short position of Greenlight Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colas SA and Greenlight Capital.
Diversification Opportunities for Colas SA and Greenlight Capital
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Colas and Greenlight is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Colas SA and Greenlight Capital Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlight Capital and Colas SA 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 Colas SA are associated (or correlated) with Greenlight Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlight Capital has no effect on the direction of Colas SA i.e., Colas SA and Greenlight Capital go up and down completely randomly.
Pair Corralation between Colas SA and Greenlight Capital
If you would invest 1,339 in Greenlight Capital Re on August 28, 2024 and sell it today you would earn a total of 169.00 from holding Greenlight Capital Re or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Colas SA vs. Greenlight Capital Re
Performance |
| Timeline |
| Colas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greenlight Capital |
Colas SA and Greenlight Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colas SA and Greenlight Capital
The main advantage of trading using opposite Colas SA and Greenlight Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colas SA position performs unexpectedly, Greenlight Capital 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 Greenlight Capital will offset losses from the drop in Greenlight Capital's long position.| Colas SA vs. Reinsurance Group of | Colas SA vs. Siriuspoint | Colas SA vs. RenaissanceRe Holdings | Colas SA vs. Maiden Holdings |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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