Correlation Between ELL ENVIRONHLDGS and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both ELL ENVIRONHLDGS 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 ELL ENVIRONHLDGS and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ELL ENVIRONHLDGS HD 0001 and GRIFFIN MINING LTD, you can compare the effects of market volatilities on ELL ENVIRONHLDGS 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 ELL ENVIRONHLDGS with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ELL ENVIRONHLDGS and GRIFFIN MINING.
Diversification Opportunities for ELL ENVIRONHLDGS and GRIFFIN MINING
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ELL and GRIFFIN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding ELL ENVIRONHLDGS HD 0001 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 ELL ENVIRONHLDGS 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 ELL ENVIRONHLDGS HD 0001 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 ELL ENVIRONHLDGS i.e., ELL ENVIRONHLDGS and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between ELL ENVIRONHLDGS and GRIFFIN MINING
Assuming the 90 days horizon ELL ENVIRONHLDGS HD 0001 is expected to generate 1.74 times more return on investment than GRIFFIN MINING. However, ELL ENVIRONHLDGS is 1.74 times more volatile than GRIFFIN MINING LTD. It trades about 0.07 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.1 per unit of risk. If you would invest 1.35 in ELL ENVIRONHLDGS HD 0001 on October 19, 2024 and sell it today you would earn a total of 0.05 from holding ELL ENVIRONHLDGS HD 0001 or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ELL ENVIRONHLDGS HD 0001 vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| ELL ENVIRONHLDGS |
| GRIFFIN MINING LTD |
ELL ENVIRONHLDGS and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ELL ENVIRONHLDGS and GRIFFIN MINING
The main advantage of trading using opposite ELL ENVIRONHLDGS and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ELL ENVIRONHLDGS 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.| ELL ENVIRONHLDGS vs. PURETECH HEALTH PLC | ELL ENVIRONHLDGS vs. MPH Health Care | ELL ENVIRONHLDGS vs. International Game Technology | ELL ENVIRONHLDGS vs. Cardinal Health |
| GRIFFIN MINING vs. Compagnie Plastic Omnium | GRIFFIN MINING vs. ELL ENVIRONHLDGS HD 0001 | GRIFFIN MINING vs. Nippon Steel | GRIFFIN MINING vs. Hyster Yale Materials Handling |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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