Correlation Between Zhong Yang and Greenhill
Can any of the company-specific risk be diversified away by investing in both Zhong Yang 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 Zhong Yang and Greenhill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zhong Yang Financial and Greenhill Co, you can compare the effects of market volatilities on Zhong Yang 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 Zhong Yang with a short position of Greenhill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhong Yang and Greenhill.
Diversification Opportunities for Zhong Yang and Greenhill
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhong and Greenhill is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhong Yang Financial and Greenhill Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenhill and Zhong Yang 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 Zhong Yang Financial 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 Zhong Yang i.e., Zhong Yang and Greenhill go up and down completely randomly.
Pair Corralation between Zhong Yang and Greenhill
If you would invest 1,473 in Greenhill Co on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Greenhill Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Zhong Yang Financial vs. Greenhill Co
Performance |
| Timeline |
| Zhong Yang Financial |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zhong Yang and Greenhill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhong Yang and Greenhill
The main advantage of trading using opposite Zhong Yang and Greenhill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhong Yang 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.| Zhong Yang vs. Netcapital | Zhong Yang vs. Applied Digital | Zhong Yang vs. Magic Empire Global | Zhong Yang vs. Lazard |
| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Digital | 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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