Correlation Between United Airlines and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both United Airlines 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 United Airlines and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Airlines Holdings and Griffin Mining, you can compare the effects of market volatilities on United Airlines 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 United Airlines with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Griffin Mining.
Diversification Opportunities for United Airlines and Griffin Mining
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Griffin is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and United Airlines 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 United Airlines Holdings 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 United Airlines i.e., United Airlines and Griffin Mining go up and down completely randomly.
Pair Corralation between United Airlines and Griffin Mining
Assuming the 90 days trading horizon United Airlines Holdings is expected to generate 1.02 times more return on investment than Griffin Mining. However, United Airlines is 1.02 times more volatile than Griffin Mining. It trades about 0.24 of its potential returns per unit of risk. Griffin Mining is currently generating about -0.12 per unit of risk. If you would invest 8,726 in United Airlines Holdings on September 13, 2024 and sell it today you would earn a total of 1,153 from holding United Airlines Holdings or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. Griffin Mining
Performance |
| Timeline |
| United Airlines Holdings |
| Griffin Mining |
United Airlines and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Griffin Mining
The main advantage of trading using opposite United Airlines and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines 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.| United Airlines vs. Griffin Mining | United Airlines vs. Dolly Varden Silver | United Airlines vs. Spotify Technology SA | United Airlines vs. Albion Technology General |
| Griffin Mining vs. Givaudan SA | Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Atalaya Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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