Correlation Between Greif Bros and Fidelity Advisor

Can any of the company-specific risk be diversified away by investing in both Greif Bros and Fidelity Advisor 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 Bros and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Greif Bros and Fidelity Advisor Sumer, you can compare the effects of market volatilities on Greif Bros and Fidelity Advisor 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 Bros with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif Bros and Fidelity Advisor.

Diversification Opportunities for Greif Bros and Fidelity Advisor

0.69

Correlation Coefficient

Greif Bros  Fidelity Advisor

Poor diversification

The 3 months correlation between Greif and Fidelity is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros and Fidelity Advisor Sumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Sumer and Greif Bros 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 Bros are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Sumer has no effect on the direction of Greif Bros i.e., Greif Bros and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Greif Bros and Fidelity Advisor

Considering the 90-day investment horizon Greif Bros is expected to generate 18.36 times less return on investment than Fidelity Advisor. In addition to that, Greif Bros is 1.1 times more volatile than Fidelity Advisor Sumer. It trades about 0.0 of its total potential returns per unit of risk. Fidelity Advisor Sumer is currently generating about 0.06 per unit of volatility. If you would invest  3,295  in Fidelity Advisor Sumer on October 8, 2024 and sell it today you would earn a total of  180.00  from holding Fidelity Advisor Sumer or generate 5.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Greif Bros  vs.  Fidelity Advisor Sumer

Greif Bros

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greif Bros has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Greif Bros is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Fidelity Advisor Sumer

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Sumer are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Fidelity Advisor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Greif Bros and Fidelity Advisor

The main advantage of trading using opposite Greif Bros and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greif Bros position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.

The idea behind Greif Bros and Fidelity Advisor Sumer 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..