Correlation Between Boston Beer and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Boston Beer 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 Boston Beer and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boston Beer and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Boston Beer 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 Boston Beer with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and GRIFFIN MINING.
Diversification Opportunities for Boston Beer and GRIFFIN MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and GRIFFIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer 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 Boston Beer 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 The Boston Beer 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 Boston Beer i.e., Boston Beer and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Boston Beer and GRIFFIN MINING
Assuming the 90 days trading horizon The Boston Beer is expected to generate 0.77 times more return on investment than GRIFFIN MINING. However, The Boston Beer is 1.29 times less risky than GRIFFIN MINING. It trades about 0.22 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.05 per unit of risk. If you would invest 27,920 in The Boston Beer on August 28, 2024 and sell it today you would earn a total of 2,020 from holding The Boston Beer or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boston Beer vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Boston Beer |
| GRIFFIN MINING LTD |
Boston Beer and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and GRIFFIN MINING
The main advantage of trading using opposite Boston Beer and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer 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.| Boston Beer vs. Merit Medical Systems | Boston Beer vs. CVR Medical Corp | Boston Beer vs. Apyx Medical Corp | Boston Beer vs. Compugroup Medical SE |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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