Correlation Between Anglesey Mining and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Anglesey Mining 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 Anglesey Mining and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglesey Mining and Griffin Mining, you can compare the effects of market volatilities on Anglesey Mining 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 Anglesey Mining with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglesey Mining and Griffin Mining.
Diversification Opportunities for Anglesey Mining and Griffin Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anglesey and Griffin is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Anglesey Mining and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Anglesey Mining 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 Anglesey 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 Anglesey Mining i.e., Anglesey Mining and Griffin Mining go up and down completely randomly.
Pair Corralation between Anglesey Mining and Griffin Mining
Assuming the 90 days trading horizon Anglesey Mining is expected to under-perform the Griffin Mining. In addition to that, Anglesey Mining is 1.81 times more volatile than Griffin Mining. It trades about -0.05 of its total potential returns per unit of risk. Griffin Mining is currently generating about 0.01 per unit of volatility. If you would invest 14,900 in Griffin Mining on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Griffin Mining or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglesey Mining vs. Griffin Mining
Performance |
| Timeline |
| Anglesey Mining |
| Griffin Mining |
Anglesey Mining and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglesey Mining and Griffin Mining
The main advantage of trading using opposite Anglesey Mining and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglesey Mining 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.| Anglesey Mining vs. Antofagasta PLC | Anglesey Mining vs. Atalaya Mining | Anglesey Mining vs. Ferrexpo PLC | Anglesey Mining vs. Amaroq Minerals |
| Griffin Mining vs. TR Property Investment | Griffin Mining vs. X FAB Silicon Foundries | Griffin Mining vs. Monks Investment Trust | Griffin Mining vs. Hansa Investment |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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