Correlation Between Compagnie Plastic and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic 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 Compagnie Plastic and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Plastic Omnium and Griffin Mining, you can compare the effects of market volatilities on Compagnie Plastic 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 Compagnie Plastic with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Griffin Mining.
Diversification Opportunities for Compagnie Plastic and Griffin Mining
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compagnie and Griffin is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Compagnie Plastic 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 Compagnie Plastic Omnium 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 Compagnie Plastic i.e., Compagnie Plastic and Griffin Mining go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Griffin Mining
Assuming the 90 days trading horizon Compagnie Plastic Omnium is expected to under-perform the Griffin Mining. In addition to that, Compagnie Plastic is 1.15 times more volatile than Griffin Mining. It trades about -0.01 of its total potential returns per unit of risk. Griffin Mining is currently generating about 0.07 per unit of volatility. If you would invest 7,520 in Griffin Mining on September 20, 2024 and sell it today you would earn a total of 7,280 from holding Griffin Mining or generate 96.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Griffin Mining
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Griffin Mining |
Compagnie Plastic and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Griffin Mining
The main advantage of trading using opposite Compagnie Plastic and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic 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.| Compagnie Plastic vs. Samsung Electronics Co | Compagnie Plastic vs. Samsung Electronics Co | Compagnie Plastic vs. Hyundai Motor | Compagnie Plastic vs. Reliance Industries Ltd |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |