Correlation Between Greif Bros and Energy Of

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

By analyzing existing cross correlation between Greif Bros and Energy of Minas, you can compare the effects of market volatilities on Greif Bros and Energy Of 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 Energy Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greif Bros and Energy Of.

Diversification Opportunities for Greif Bros and Energy Of

0.38

Correlation Coefficient

Greif Bros  Energy Of

Weak diversification

The 3 months correlation between Greif and Energy is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Greif Bros and Energy of Minas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy of Minas 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 Energy Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy of Minas has no effect on the direction of Greif Bros i.e., Greif Bros and Energy Of go up and down completely randomly.

Pair Corralation between Greif Bros and Energy Of

Considering the 90-day investment horizon Greif Bros is expected to generate 0.82 times more return on investment than Energy Of. However, Greif Bros is 1.21 times less risky than Energy Of. It trades about 0.11 of its potential returns per unit of risk. Energy of Minas is currently generating about 0.04 per unit of risk. If you would invest  5,325  in Greif Bros on May 4, 2025 and sell it today you would earn a total of  893.00  from holding Greif Bros or generate 16.77% return on investment over 90 days.

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

Greif Bros  vs.  Energy of Minas

Greif Bros

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Greif Bros are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Greif Bros reported solid returns over the last few months and may actually be approaching a breakup point.

Energy of Minas

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Energy of Minas are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Energy Of may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Greif Bros and Energy Of

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

The idea behind Greif Bros and Energy of Minas 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.