Correlation Between Kaufman Et and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Kaufman Et and Griffin Mining 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 Kaufman Et and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Et Broad and Griffin Mining, you can compare the effects of market volatilities on Kaufman Et and Griffin Mining 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 Kaufman Et with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and Griffin Mining.
Diversification Opportunities for Kaufman Et and Griffin Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kaufman and Griffin is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Kaufman Et 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 Kaufman Et Broad are associated (or correlated) with Griffin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffin Mining has no effect on the direction of Kaufman Et i.e., Kaufman Et and Griffin Mining go up and down completely randomly.
Pair Corralation between Kaufman Et and Griffin Mining
Assuming the 90 days trading horizon Kaufman Et Broad is expected to generate 0.66 times more return on investment than Griffin Mining. However, Kaufman Et Broad is 1.52 times less risky than Griffin Mining. It trades about 0.05 of its potential returns per unit of risk. Griffin Mining is currently generating about 0.02 per unit of risk. If you would invest 3,133 in Kaufman Et Broad on October 30, 2024 and sell it today you would earn a total of 87.00 from holding Kaufman Et Broad or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaufman Et Broad vs. Griffin Mining
Performance |
| Timeline |
| Kaufman Et Broad |
| Griffin Mining |
Kaufman Et and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Et and Griffin Mining
The main advantage of trading using opposite Kaufman Et and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et position performs unexpectedly, Griffin Mining 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 Griffin Mining will offset losses from the drop in Griffin Mining's long position.| Kaufman Et vs. Orient Telecoms | Kaufman Et vs. Aeorema Communications Plc | Kaufman Et vs. Universal Music Group | Kaufman Et vs. Vienna Insurance Group |
| Griffin Mining vs. MyHealthChecked Plc | Griffin Mining vs. Made Tech Group | Griffin Mining vs. Planet Fitness Cl | Griffin Mining vs. Eco Animal Health |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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