Correlation Between VITEC SOFTWARE and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both VITEC SOFTWARE 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 VITEC SOFTWARE and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VITEC SOFTWARE GROUP and GRIFFIN MINING LTD, you can compare the effects of market volatilities on VITEC SOFTWARE 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 VITEC SOFTWARE with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of VITEC SOFTWARE and GRIFFIN MINING.
Diversification Opportunities for VITEC SOFTWARE and GRIFFIN MINING
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VITEC and GRIFFIN is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding VITEC SOFTWARE GROUP 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 VITEC SOFTWARE 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 VITEC SOFTWARE GROUP 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 VITEC SOFTWARE i.e., VITEC SOFTWARE and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between VITEC SOFTWARE and GRIFFIN MINING
Assuming the 90 days horizon VITEC SOFTWARE GROUP is expected to generate 1.46 times more return on investment than GRIFFIN MINING. However, VITEC SOFTWARE is 1.46 times more volatile than GRIFFIN MINING LTD. It trades about 0.14 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.12 per unit of risk. If you would invest 4,182 in VITEC SOFTWARE GROUP on September 12, 2024 and sell it today you would earn a total of 250.00 from holding VITEC SOFTWARE GROUP or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VITEC SOFTWARE GROUP vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| VITEC SOFTWARE GROUP |
| GRIFFIN MINING LTD |
VITEC SOFTWARE and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VITEC SOFTWARE and GRIFFIN MINING
The main advantage of trading using opposite VITEC SOFTWARE and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VITEC SOFTWARE 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.| VITEC SOFTWARE vs. Suntory Beverage Food | VITEC SOFTWARE vs. ALEFARM BREWING DK 05 | VITEC SOFTWARE vs. National Beverage Corp | VITEC SOFTWARE vs. Tsingtao Brewery |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |