Correlation Between Fuwei Films and Greif Bros
Can any of the company-specific risk be diversified away by investing in both Fuwei Films 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 Fuwei Films and Greif Bros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuwei Films Holdings and Greif Bros, you can compare the effects of market volatilities on Fuwei Films 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 Fuwei Films with a short position of Greif Bros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuwei Films and Greif Bros.
Diversification Opportunities for Fuwei Films and Greif Bros
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fuwei and Greif is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fuwei Films Holdings and Greif Bros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif Bros and Fuwei Films 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 Fuwei Films Holdings 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 Fuwei Films i.e., Fuwei Films and Greif Bros go up and down completely randomly.
Pair Corralation between Fuwei Films and Greif Bros
If you would invest 6,300 in Greif Bros on January 17, 2024 and sell it today you would earn a total of 18.00 from holding Greif Bros or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Fuwei Films Holdings vs. Greif Bros
Performance |
| Timeline |
| Fuwei Films Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greif Bros |
Fuwei Films and Greif Bros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuwei Films and Greif Bros
The main advantage of trading using opposite Fuwei Films and Greif Bros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuwei Films 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.| Fuwei Films vs. Continental Beverage Brands | Fuwei Films vs. Fresh Grapes LLC | Fuwei Films vs. Anheuser Busch Inbev | Fuwei Films vs. Superior Drilling Products |
| Greif Bros vs. Silgan Holdings | Greif Bros vs. AptarGroup | Greif Bros vs. Sonoco Products | Greif Bros vs. Graphic Packaging Holding |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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