Correlation Between InPlay Oil and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both InPlay Oil 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 InPlay Oil and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InPlay Oil Corp and GRIFFIN MINING LTD, you can compare the effects of market volatilities on InPlay Oil 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 InPlay Oil with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of InPlay Oil and GRIFFIN MINING.
Diversification Opportunities for InPlay Oil and GRIFFIN MINING
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between InPlay and GRIFFIN is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding InPlay Oil Corp 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 InPlay Oil 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 InPlay Oil Corp 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 InPlay Oil i.e., InPlay Oil and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between InPlay Oil and GRIFFIN MINING
Assuming the 90 days trading horizon InPlay Oil Corp is expected to under-perform the GRIFFIN MINING. In addition to that, InPlay Oil is 1.11 times more volatile than GRIFFIN MINING LTD. It trades about -0.05 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.03 per unit of volatility. If you would invest 167.00 in GRIFFIN MINING LTD on November 6, 2024 and sell it today you would earn a total of 5.00 from holding GRIFFIN MINING LTD or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InPlay Oil Corp vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| InPlay Oil Corp |
| GRIFFIN MINING LTD |
InPlay Oil and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InPlay Oil and GRIFFIN MINING
The main advantage of trading using opposite InPlay Oil and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InPlay Oil 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.| InPlay Oil vs. CITIC Telecom International | InPlay Oil vs. TROPHY GAMES DEV | InPlay Oil vs. Boyd Gaming | InPlay Oil vs. COMBA TELECOM SYST |
| GRIFFIN MINING vs. INFORMATION SVC GRP | GRIFFIN MINING vs. Linedata Services SA | GRIFFIN MINING vs. DATATEC LTD 2 | GRIFFIN MINING vs. Cars 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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