Correlation Between Awilco Drilling and Griffon
Can any of the company-specific risk be diversified away by investing in both Awilco Drilling 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 Awilco Drilling and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awilco Drilling PLC and Griffon, you can compare the effects of market volatilities on Awilco Drilling 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 Awilco Drilling with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awilco Drilling and Griffon.
Diversification Opportunities for Awilco Drilling and Griffon
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Awilco and Griffon is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Awilco Drilling PLC and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Awilco Drilling 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 Awilco Drilling PLC 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 Awilco Drilling i.e., Awilco Drilling and Griffon go up and down completely randomly.
Pair Corralation between Awilco Drilling and Griffon
Assuming the 90 days horizon Awilco Drilling PLC is expected to under-perform the Griffon. But the otc stock apears to be less risky and, when comparing its historical volatility, Awilco Drilling PLC is 8.31 times less risky than Griffon. The otc stock trades about -0.21 of its potential returns per unit of risk. The Griffon is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,980 in Griffon on September 12, 2024 and sell it today you would earn a total of 1,027 from holding Griffon or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awilco Drilling PLC vs. Griffon
Performance |
| Timeline |
| Awilco Drilling PLC |
| Griffon |
Awilco Drilling and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awilco Drilling and Griffon
The main advantage of trading using opposite Awilco Drilling and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awilco Drilling 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.| Awilco Drilling vs. Noble plc | Awilco Drilling vs. Transocean | Awilco Drilling vs. Helmerich and Payne | Awilco Drilling vs. Patterson UTI Energy |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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