Correlation Between Brickell Biotech and Griffon
Can any of the company-specific risk be diversified away by investing in both Brickell Biotech 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 Brickell Biotech and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brickell Biotech and Griffon, you can compare the effects of market volatilities on Brickell Biotech 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 Brickell Biotech with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brickell Biotech and Griffon.
Diversification Opportunities for Brickell Biotech and Griffon
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Brickell and Griffon is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Brickell Biotech and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Brickell Biotech 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 Brickell Biotech 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 Brickell Biotech i.e., Brickell Biotech and Griffon go up and down completely randomly.
Pair Corralation between Brickell Biotech and Griffon
If you would invest 5,170 in Griffon on September 4, 2024 and sell it today you would earn a total of 3,112 from holding Griffon or generate 60.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Brickell Biotech vs. Griffon
Performance |
| Timeline |
| Brickell Biotech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Griffon |
Brickell Biotech and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brickell Biotech and Griffon
The main advantage of trading using opposite Brickell Biotech and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brickell Biotech 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.| Brickell Biotech vs. Esperion Therapeutics | Brickell Biotech vs. Guangdong Investment Limited | Brickell Biotech vs. Solstad Offshore ASA | Brickell Biotech vs. Viemed Healthcare |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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