Correlation Between Eightco Holdings and Greif Bros

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

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

Diversification Opportunities for Eightco Holdings and Greif Bros

-0.41

Correlation Coefficient

Eightco Holdings  Greif Bros

Very good diversification

The 3 months correlation between Eightco and Greif is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Eightco Holdings and Greif Bros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif Bros and Eightco Holdings 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 Eightco 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 Eightco Holdings i.e., Eightco Holdings and Greif Bros go up and down completely randomly.

Pair Corralation between Eightco Holdings and Greif Bros

Given the investment horizon of 90 days Eightco Holdings is expected to generate 28.9 times more return on investment than Greif Bros. However, Eightco Holdings is 28.9 times more volatile than Greif Bros. It trades about 0.04 of its potential returns per unit of risk. Greif Bros is currently generating about 0.01 per unit of risk. If you would invest  121.00  in Eightco Holdings on September 16, 2024 and sell it today you would earn a total of  38.00  from holding Eightco Holdings or generate 31.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Eightco Holdings  vs.  Greif Bros

Eightco Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eightco Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Eightco Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Greif Bros

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Greif Bros are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Greif Bros may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Eightco Holdings and Greif Bros

The main advantage of trading using opposite Eightco Holdings and Greif Bros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eightco Holdings 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 Eightco Holdings 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.