Correlation Between Gaztransport and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Gaztransport 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 Gaztransport and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport et Technigaz and Griffin Mining, you can compare the effects of market volatilities on Gaztransport 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 Gaztransport with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Griffin Mining.
Diversification Opportunities for Gaztransport and Griffin Mining
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gaztransport and Griffin is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Gaztransport 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 Gaztransport et Technigaz 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 Gaztransport i.e., Gaztransport and Griffin Mining go up and down completely randomly.
Pair Corralation between Gaztransport and Griffin Mining
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 0.56 times more return on investment than Griffin Mining. However, Gaztransport et Technigaz is 1.77 times less risky than Griffin Mining. It trades about 0.47 of its potential returns per unit of risk. Griffin Mining is currently generating about 0.07 per unit of risk. If you would invest 12,930 in Gaztransport et Technigaz on October 25, 2024 and sell it today you would earn a total of 1,815 from holding Gaztransport et Technigaz or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Griffin Mining
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Griffin Mining |
Gaztransport and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Griffin Mining
The main advantage of trading using opposite Gaztransport and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport 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.| Gaztransport vs. Omega Healthcare Investors | Gaztransport vs. Associated British Foods | Gaztransport vs. Cardinal Health | Gaztransport vs. National Beverage Corp |
| Griffin Mining vs. GreenX Metals | Griffin Mining vs. European Metals Holdings | Griffin Mining vs. Sovereign Metals | Griffin Mining vs. Gaztransport et Technigaz |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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