Correlation Between AiXin Life and Griffon
Can any of the company-specific risk be diversified away by investing in both AiXin Life and Griffon 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 AiXin Life and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiXin Life International and Griffon, you can compare the effects of market volatilities on AiXin Life and Griffon 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 AiXin Life with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiXin Life and Griffon.
Diversification Opportunities for AiXin Life and Griffon
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AiXin and Griffon is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding AiXin Life International and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and AiXin Life 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 AiXin Life International are associated (or correlated) with Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of AiXin Life i.e., AiXin Life and Griffon go up and down completely randomly.
Pair Corralation between AiXin Life and Griffon
Given the investment horizon of 90 days AiXin Life International is expected to generate 1.74 times more return on investment than Griffon. However, AiXin Life is 1.74 times more volatile than Griffon. It trades about 0.23 of its potential returns per unit of risk. Griffon is currently generating about 0.19 per unit of risk. If you would invest 1.80 in AiXin Life International on October 21, 2024 and sell it today you would earn a total of 0.20 from holding AiXin Life International or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AiXin Life International vs. Griffon
Performance |
| Timeline |
| AiXin Life International |
| Griffon |
AiXin Life and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AiXin Life and Griffon
The main advantage of trading using opposite AiXin Life and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiXin Life position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.| AiXin Life vs. Griffon | AiXin Life vs. Matthews International | AiXin Life vs. Valmont Industries | AiXin Life vs. Steel Partners Holdings |
| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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