Correlation Between AmerisourceBergen and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both AmerisourceBergen 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 AmerisourceBergen and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmerisourceBergen and GRIFFIN MINING LTD, you can compare the effects of market volatilities on AmerisourceBergen 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 AmerisourceBergen with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmerisourceBergen and GRIFFIN MINING.
Diversification Opportunities for AmerisourceBergen and GRIFFIN MINING
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AmerisourceBergen and GRIFFIN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AmerisourceBergen 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 AmerisourceBergen 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 AmerisourceBergen 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 AmerisourceBergen i.e., AmerisourceBergen and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between AmerisourceBergen and GRIFFIN MINING
Assuming the 90 days horizon AmerisourceBergen is expected to generate 0.78 times more return on investment than GRIFFIN MINING. However, AmerisourceBergen is 1.28 times less risky than GRIFFIN MINING. It trades about 0.37 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 20,791 in AmerisourceBergen on September 1, 2024 and sell it today you would earn a total of 2,614 from holding AmerisourceBergen or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AmerisourceBergen vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| AmerisourceBergen |
| GRIFFIN MINING LTD |
AmerisourceBergen and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmerisourceBergen and GRIFFIN MINING
The main advantage of trading using opposite AmerisourceBergen and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmerisourceBergen 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.| AmerisourceBergen vs. GRIFFIN MINING LTD | AmerisourceBergen vs. Harmony Gold Mining | AmerisourceBergen vs. UNITED RENTALS | AmerisourceBergen vs. CSSC Offshore Marine |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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