Correlation Between COFCO Joycome and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome 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 COFCO Joycome and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and GRIFFIN MINING LTD, you can compare the effects of market volatilities on COFCO Joycome 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 COFCO Joycome with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and GRIFFIN MINING.
Diversification Opportunities for COFCO Joycome and GRIFFIN MINING
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COFCO and GRIFFIN is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD and COFCO Joycome 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 COFCO Joycome Foods 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 LTD has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between COFCO Joycome and GRIFFIN MINING
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the GRIFFIN MINING. In addition to that, COFCO Joycome is 1.51 times more volatile than GRIFFIN MINING LTD. It trades about -0.23 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.22 per unit of volatility. If you would invest 172.00 in GRIFFIN MINING LTD on October 12, 2024 and sell it today you would earn a total of 12.00 from holding GRIFFIN MINING LTD or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| COFCO Joycome Foods |
| GRIFFIN MINING LTD |
COFCO Joycome and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and GRIFFIN MINING
The main advantage of trading using opposite COFCO Joycome and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome 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.| COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. NMI Holdings | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. Talanx AG |
| GRIFFIN MINING vs. INTERSHOP Communications Aktiengesellschaft | GRIFFIN MINING vs. Globex Mining Enterprises | GRIFFIN MINING vs. Geely Automobile Holdings | GRIFFIN MINING vs. Yanzhou Coal 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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