Correlation Between CVB Financial and Griffon
Can any of the company-specific risk be diversified away by investing in both CVB Financial 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 CVB Financial and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVB Financial Corp and Griffon, you can compare the effects of market volatilities on CVB Financial 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 CVB Financial with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVB Financial and Griffon.
Diversification Opportunities for CVB Financial and Griffon
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CVB and Griffon is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding CVB Financial Corp and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and CVB Financial 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 CVB Financial Corp 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 CVB Financial i.e., CVB Financial and Griffon go up and down completely randomly.
Pair Corralation between CVB Financial and Griffon
Assuming the 90 days horizon CVB Financial Corp is expected to under-perform the Griffon. In addition to that, CVB Financial is 1.17 times more volatile than Griffon. It trades about -0.2 of its total potential returns per unit of risk. Griffon is currently generating about -0.12 per unit of volatility. If you would invest 7,850 in Griffon on October 30, 2024 and sell it today you would lose (550.00) from holding Griffon or give up 7.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.37% |
| Values | Daily Returns |
CVB Financial Corp vs. Griffon
Performance |
| Timeline |
| CVB Financial Corp |
| Griffon |
CVB Financial and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVB Financial and Griffon
The main advantage of trading using opposite CVB Financial and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVB Financial 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.| CVB Financial vs. Guangdong Investment Limited | CVB Financial vs. MAGNUM MINING EXP | CVB Financial vs. CDL INVESTMENT | CVB Financial vs. De Grey Mining |
| Griffon vs. Information Services International Dentsu | Griffon vs. BJs Restaurants | Griffon vs. COSMOSTEEL HLDGS | Griffon vs. Olympic Steel |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |