Correlation Between AM EAGLE and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both AM EAGLE 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 AM EAGLE and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM EAGLE OUTFITTERS and GRIFFIN MINING LTD, you can compare the effects of market volatilities on AM EAGLE 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 AM EAGLE with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and GRIFFIN MINING.
Diversification Opportunities for AM EAGLE and GRIFFIN MINING
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AFG and GRIFFIN is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS 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 AM EAGLE 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 AM EAGLE OUTFITTERS 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 AM EAGLE i.e., AM EAGLE and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between AM EAGLE and GRIFFIN MINING
Assuming the 90 days trading horizon AM EAGLE is expected to generate 17.24 times less return on investment than GRIFFIN MINING. In addition to that, AM EAGLE is 1.09 times more volatile than GRIFFIN MINING LTD. It trades about 0.0 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 September 2, 2024 and sell it today you would earn a total of 4.00 from holding GRIFFIN MINING LTD or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AM EAGLE OUTFITTERS vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| AM EAGLE OUTFITTERS |
| GRIFFIN MINING LTD |
AM EAGLE and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM EAGLE and GRIFFIN MINING
The main advantage of trading using opposite AM EAGLE and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE 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.| AM EAGLE vs. SIVERS SEMICONDUCTORS AB | AM EAGLE vs. Darden Restaurants | AM EAGLE vs. Reliance Steel Aluminum | AM EAGLE vs. Q2M Managementberatung AG |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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