Correlation Between Greif and Suncorp Group

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

By analyzing existing cross correlation between Greif Inc and Suncorp Group Ltd, you can compare the effects of market volatilities on Greif and Suncorp Group 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 Suncorp Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif and Suncorp Group.

Diversification Opportunities for Greif and Suncorp Group

0.72

Correlation Coefficient

Greif  Suncorp Group

Poor diversification

The 3 months correlation between Greif and Suncorp is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Greif Inc and Suncorp Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncorp Group 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 Suncorp Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncorp Group has no effect on the direction of Greif i.e., Greif and Suncorp Group go up and down completely randomly.

Pair Corralation between Greif and Suncorp Group

Assuming the 90 days horizon Greif Inc is expected to generate 0.86 times more return on investment than Suncorp Group. However, Greif Inc is 1.17 times less risky than Suncorp Group. It trades about 0.09 of its potential returns per unit of risk. Suncorp Group Ltd is currently generating about 0.03 per unit of risk. If you would invest  5,658  in Greif Inc on May 4, 2025 and sell it today you would earn a total of  737.00  from holding Greif Inc or generate 13.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Greif Inc  vs.  Suncorp Group Ltd

Greif Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Greif Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Greif sustained solid returns over the last few months and may actually be approaching a breakup point.

Suncorp Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Suncorp Group Ltd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental indicators, Suncorp Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Greif and Suncorp Group

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

The idea behind Greif Inc and Suncorp Group Ltd 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.