Correlation Between Greif and Greif Bros
Can any of the company-specific risk be diversified away by investing in both Greif and Greif Bros 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 Greif and Greif Bros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greif Inc and Greif Bros, you can compare the effects of market volatilities on Greif and Greif Bros 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 Greif with a short position of Greif Bros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif and Greif Bros.
Diversification Opportunities for Greif and Greif Bros
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Greif and Greif is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Greif Inc and Greif Bros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif Bros and Greif 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 Greif Inc are associated (or correlated) with Greif Bros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif Bros has no effect on the direction of Greif i.e., Greif and Greif Bros go up and down completely randomly.
Pair Corralation between Greif and Greif Bros
Assuming the 90 days horizon Greif Inc is expected to generate 1.01 times more return on investment than Greif Bros. However, Greif is 1.01 times more volatile than Greif Bros. It trades about -0.02 of its potential returns per unit of risk. Greif Bros is currently generating about -0.04 per unit of risk. If you would invest 6,656 in Greif Inc on June 8, 2025 and sell it today you would lose (206.00) from holding Greif Inc or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greif Inc vs. Greif Bros
Performance |
| Timeline |
| Greif Inc |
| Greif Bros |
Greif and Greif Bros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greif and Greif Bros
The main advantage of trading using opposite Greif and Greif Bros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif position performs unexpectedly, Greif Bros 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 Bros will offset losses from the drop in Greif Bros' long position.The idea behind Greif Inc and Greif Bros pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Greif Bros vs. Greif Inc | Greif Bros vs. Myers Industries | Greif Bros vs. Silgan Holdings | Greif Bros vs. O I Glass |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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