Correlation Between TERADATA and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both TERADATA 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 TERADATA and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TERADATA and GRIFFIN MINING LTD, you can compare the effects of market volatilities on TERADATA 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 TERADATA with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of TERADATA and GRIFFIN MINING.
Diversification Opportunities for TERADATA and GRIFFIN MINING
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between TERADATA and GRIFFIN is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding TERADATA 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 TERADATA 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 TERADATA 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 TERADATA i.e., TERADATA and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between TERADATA and GRIFFIN MINING
Assuming the 90 days trading horizon TERADATA is expected to generate 60.76 times less return on investment than GRIFFIN MINING. But when comparing it to its historical volatility, TERADATA is 1.18 times less risky than GRIFFIN MINING. It trades about 0.0 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 80.00 in GRIFFIN MINING LTD on September 3, 2024 and sell it today you would earn a total of 91.00 from holding GRIFFIN MINING LTD or generate 113.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TERADATA vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| TERADATA |
| GRIFFIN MINING LTD |
TERADATA and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TERADATA and GRIFFIN MINING
The main advantage of trading using opposite TERADATA and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TERADATA 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.| TERADATA vs. PKSHA TECHNOLOGY INC | TERADATA vs. DXC Technology Co | TERADATA vs. Sunny Optical Technology | TERADATA vs. MAVEN WIRELESS SWEDEN |
| GRIFFIN MINING vs. Cardinal Health | GRIFFIN MINING vs. ALERION CLEANPOWER | GRIFFIN MINING vs. Clean Energy Fuels | GRIFFIN MINING vs. FEMALE HEALTH |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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