Correlation Between X FAB and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both X FAB 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 X FAB and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X FAB Silicon Foundries and Griffin Mining, you can compare the effects of market volatilities on X FAB 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 X FAB with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Griffin Mining.
Diversification Opportunities for X FAB and Griffin Mining
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 0ROZ and Griffin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and X FAB 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 X FAB Silicon Foundries 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 X FAB i.e., X FAB and Griffin Mining go up and down completely randomly.
Pair Corralation between X FAB and Griffin Mining
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to generate 5.39 times more return on investment than Griffin Mining. However, X FAB is 5.39 times more volatile than Griffin Mining. It trades about 0.24 of its potential returns per unit of risk. Griffin Mining is currently generating about -0.12 per unit of risk. If you would invest 459.00 in X FAB Silicon Foundries on September 13, 2024 and sell it today you would earn a total of 341.00 from holding X FAB Silicon Foundries or generate 74.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. Griffin Mining
Performance |
| Timeline |
| X FAB Silicon |
| Griffin Mining |
X FAB and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Griffin Mining
The main advantage of trading using opposite X FAB and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB 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.| X FAB vs. Samsung Electronics Co | X FAB vs. Samsung Electronics Co | X FAB vs. Hyundai Motor | X FAB 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 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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