Correlation Between SoftBank Group and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both SoftBank Group 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 SoftBank Group and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoftBank Group Corp and Griffin Mining, you can compare the effects of market volatilities on SoftBank Group 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 SoftBank Group with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftBank Group and Griffin Mining.
Diversification Opportunities for SoftBank Group and Griffin Mining
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SoftBank and Griffin is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SoftBank Group Corp and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and SoftBank Group 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 SoftBank Group 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 SoftBank Group i.e., SoftBank Group and Griffin Mining go up and down completely randomly.
Pair Corralation between SoftBank Group and Griffin Mining
Assuming the 90 days trading horizon SoftBank Group Corp is expected to generate 1.42 times more return on investment than Griffin Mining. However, SoftBank Group is 1.42 times more volatile than Griffin Mining. It trades about 0.06 of its potential returns per unit of risk. Griffin Mining is currently generating about 0.08 per unit of risk. If you would invest 595,682 in SoftBank Group Corp on September 2, 2024 and sell it today you would earn a total of 282,318 from holding SoftBank Group Corp or generate 47.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.17% |
| Values | Daily Returns |
SoftBank Group Corp vs. Griffin Mining
Performance |
| Timeline |
| SoftBank Group Corp |
| Griffin Mining |
SoftBank Group and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoftBank Group and Griffin Mining
The main advantage of trading using opposite SoftBank Group and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftBank Group 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.| SoftBank Group vs. Toyota Motor Corp | SoftBank Group vs. OTP Bank Nyrt | SoftBank Group vs. Las Vegas Sands | SoftBank Group vs. Yum Brands |
| Griffin Mining vs. DXC Technology Co | Griffin Mining vs. Auction Technology Group | Griffin Mining vs. Zoom Video Communications | Griffin Mining vs. Spotify Technology SA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |