Correlation Between Anglo Asian and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Anglo Asian 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 Anglo Asian and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglo Asian Mining and Griffin Mining, you can compare the effects of market volatilities on Anglo Asian 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 Anglo Asian with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglo Asian and Griffin Mining.
Diversification Opportunities for Anglo Asian and Griffin Mining
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anglo and Griffin is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Anglo Asian Mining and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Anglo Asian 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 Anglo Asian Mining 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 has no effect on the direction of Anglo Asian i.e., Anglo Asian and Griffin Mining go up and down completely randomly.
Pair Corralation between Anglo Asian and Griffin Mining
Assuming the 90 days trading horizon Anglo Asian Mining is expected to under-perform the Griffin Mining. But the stock apears to be less risky and, when comparing its historical volatility, Anglo Asian Mining is 1.32 times less risky than Griffin Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Griffin Mining is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14,200 in Griffin Mining on October 12, 2024 and sell it today you would earn a total of 250.00 from holding Griffin Mining or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglo Asian Mining vs. Griffin Mining
Performance |
| Timeline |
| Anglo Asian Mining |
| Griffin Mining |
Anglo Asian and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglo Asian and Griffin Mining
The main advantage of trading using opposite Anglo Asian and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglo Asian 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.| Anglo Asian vs. Zoom Video Communications | Anglo Asian vs. BW Offshore | Anglo Asian vs. Nordic Semiconductor ASA | Anglo Asian vs. Darden Restaurants |
| Griffin Mining vs. Trainline Plc | Griffin Mining vs. Norwegian Air Shuttle | Griffin Mining vs. Bisichi Mining PLC | Griffin Mining vs. First Majestic Silver |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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