Correlation Between INDO RAMA and Griffon
Can any of the company-specific risk be diversified away by investing in both INDO RAMA and Griffon 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 INDO RAMA and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INDO RAMA SYNTHETIC and Griffon, you can compare the effects of market volatilities on INDO RAMA and Griffon 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 INDO RAMA with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDO RAMA and Griffon.
Diversification Opportunities for INDO RAMA and Griffon
Pay attention - limited upside
The 3 months correlation between INDO and Griffon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INDO RAMA SYNTHETIC and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and INDO RAMA 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 INDO RAMA SYNTHETIC are associated (or correlated) with Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of INDO RAMA i.e., INDO RAMA and Griffon go up and down completely randomly.
Pair Corralation between INDO RAMA and Griffon
If you would invest 21.00 in INDO RAMA SYNTHETIC on October 14, 2024 and sell it today you would earn a total of 0.00 from holding INDO RAMA SYNTHETIC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
INDO RAMA SYNTHETIC vs. Griffon
Performance |
| Timeline |
| INDO RAMA SYNTHETIC |
| Griffon |
INDO RAMA and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDO RAMA and Griffon
The main advantage of trading using opposite INDO RAMA and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDO RAMA position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.| INDO RAMA vs. Alfa Financial Software | INDO RAMA vs. Kingdee International Software | INDO RAMA vs. NorAm Drilling AS | INDO RAMA vs. INTERSHOP Communications Aktiengesellschaft |
| Griffon vs. Automatic Data Processing | Griffon vs. Information Services International Dentsu | Griffon vs. CANON MARKETING JP | Griffon vs. DATATEC LTD 2 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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