Correlation Between Universal Display and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Universal Display 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 Universal Display and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Display Corp and Griffin Mining, you can compare the effects of market volatilities on Universal Display 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 Universal Display with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Display and Griffin Mining.
Diversification Opportunities for Universal Display and Griffin Mining
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Universal and Griffin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display Corp and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Universal Display 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 Universal Display Corp 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 Universal Display i.e., Universal Display and Griffin Mining go up and down completely randomly.
Pair Corralation between Universal Display and Griffin Mining
Assuming the 90 days trading horizon Universal Display Corp is expected to generate 1.33 times more return on investment than Griffin Mining. However, Universal Display is 1.33 times more volatile than Griffin Mining. It trades about 0.05 of its potential returns per unit of risk. Griffin Mining is currently generating about 0.07 per unit of risk. If you would invest 10,515 in Universal Display Corp on September 4, 2024 and sell it today you would earn a total of 6,176 from holding Universal Display Corp or generate 58.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.33% |
| Values | Daily Returns |
Universal Display Corp vs. Griffin Mining
Performance |
| Timeline |
| Universal Display Corp |
| Griffin Mining |
Universal Display and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Display and Griffin Mining
The main advantage of trading using opposite Universal Display and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Display 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.| Universal Display vs. Samsung Electronics Co | Universal Display vs. Samsung Electronics Co | Universal Display vs. Hyundai Motor | Universal Display vs. Toyota Motor Corp |
| Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Atalaya Mining | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Amaroq Minerals |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |