Correlation Between SCIENCE IN and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both SCIENCE IN 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 SCIENCE IN and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCIENCE IN SPORT and GRIFFIN MINING LTD, you can compare the effects of market volatilities on SCIENCE IN 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 SCIENCE IN with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCIENCE IN and GRIFFIN MINING.
Diversification Opportunities for SCIENCE IN and GRIFFIN MINING
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCIENCE and GRIFFIN is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SCIENCE IN SPORT 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 SCIENCE IN 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 SCIENCE IN SPORT 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 SCIENCE IN i.e., SCIENCE IN and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between SCIENCE IN and GRIFFIN MINING
Assuming the 90 days horizon SCIENCE IN SPORT is expected to generate 1.23 times more return on investment than GRIFFIN MINING. However, SCIENCE IN is 1.23 times more volatile than GRIFFIN MINING LTD. It trades about 0.08 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.02 per unit of risk. If you would invest 29.00 in SCIENCE IN SPORT on September 1, 2024 and sell it today you would earn a total of 1.00 from holding SCIENCE IN SPORT or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCIENCE IN SPORT vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| SCIENCE IN SPORT |
| GRIFFIN MINING LTD |
SCIENCE IN and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCIENCE IN and GRIFFIN MINING
The main advantage of trading using opposite SCIENCE IN and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCIENCE IN 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.| SCIENCE IN vs. Danone SA | SCIENCE IN vs. Superior Plus Corp | SCIENCE IN vs. NMI Holdings | SCIENCE IN vs. Origin Agritech |
| GRIFFIN MINING vs. Microbot Medical | GRIFFIN MINING vs. VIRGIN WINES UK | GRIFFIN MINING vs. Japan Medical Dynamic | GRIFFIN MINING vs. JAPAN TOBACCO UNSPADR12 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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