Correlation Between SHIP HEALTHCARE and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both SHIP HEALTHCARE 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 SHIP HEALTHCARE and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHIP HEALTHCARE HLDGINC and GRIFFIN MINING LTD, you can compare the effects of market volatilities on SHIP HEALTHCARE 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 SHIP HEALTHCARE with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHIP HEALTHCARE and GRIFFIN MINING.
Diversification Opportunities for SHIP HEALTHCARE and GRIFFIN MINING
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SHIP and GRIFFIN is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE i.e., SHIP HEALTHCARE and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between SHIP HEALTHCARE and GRIFFIN MINING
Assuming the 90 days horizon SHIP HEALTHCARE HLDGINC is expected to under-perform the GRIFFIN MINING. But the stock apears to be less risky and, when comparing its historical volatility, SHIP HEALTHCARE HLDGINC is 1.06 times less risky than GRIFFIN MINING. The stock trades about -0.19 of its potential returns per unit of risk. The GRIFFIN MINING LTD is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 173.00 in GRIFFIN MINING LTD on August 25, 2024 and sell it today you would lose (8.00) from holding GRIFFIN MINING LTD or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHIP HEALTHCARE HLDGINC vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| SHIP HEALTHCARE HLDGINC |
| GRIFFIN MINING LTD |
SHIP HEALTHCARE and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHIP HEALTHCARE and GRIFFIN MINING
The main advantage of trading using opposite SHIP HEALTHCARE and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHIP HEALTHCARE 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.| SHIP HEALTHCARE vs. Tianjin Capital Environmental | SHIP HEALTHCARE vs. WisdomTree Investments | SHIP HEALTHCARE vs. ECHO INVESTMENT ZY | SHIP HEALTHCARE vs. Virtus Investment Partners |
| GRIFFIN MINING vs. JSC Halyk bank | GRIFFIN MINING vs. REVO INSURANCE SPA | GRIFFIN MINING vs. MINCO SILVER | GRIFFIN MINING vs. The Hanover Insurance |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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