Correlation Between 24SEVENOFFICE GROUP and Griffon

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Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and Griffon, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and Griffon.

Diversification Opportunities for 24SEVENOFFICE GROUP and Griffon

24SEVENOFFICEGriffonDiversified Away24SEVENOFFICEGriffonDiversified Away100%
0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between 24SEVENOFFICE and Griffon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB 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 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and Griffon go up and down completely randomly.

Pair Corralation between 24SEVENOFFICE GROUP and Griffon

Assuming the 90 days horizon 24SEVENOFFICE GROUP AB is expected to generate 0.37 times more return on investment than Griffon. However, 24SEVENOFFICE GROUP AB is 2.72 times less risky than Griffon. It trades about 0.0 of its potential returns per unit of risk. Griffon is currently generating about 0.0 per unit of risk. If you would invest  199.00  in 24SEVENOFFICE GROUP AB on September 21, 2024 and sell it today you would earn a total of  0.00  from holding 24SEVENOFFICE GROUP AB or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.65%
ValuesDaily Returns

24SEVENOFFICE GROUP AB  vs.  Griffon

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -100102030
JavaScript chart by amCharts 3.21.15719 GFF
       Timeline  
24SEVENOFFICE GROUP 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in 24SEVENOFFICE GROUP AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, 24SEVENOFFICE GROUP reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1.51.61.71.81.922.1
Griffon 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Griffon are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Griffon reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec6065707580

24SEVENOFFICE GROUP and Griffon Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-12.46-9.33-6.2-3.080.03.136.369.612.8316.07 0.0100.0150.0200.0250.0300.0350.040
JavaScript chart by amCharts 3.21.15719 GFF
       Returns  

Pair Trading with 24SEVENOFFICE GROUP and Griffon

The main advantage of trading using opposite 24SEVENOFFICE GROUP and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP 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.
The idea behind 24SEVENOFFICE GROUP AB and Griffon pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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