Correlation Between Bloomsbury Publishing and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Bloomsbury Publishing 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 Bloomsbury Publishing and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomsbury Publishing Plc and Griffin Mining, you can compare the effects of market volatilities on Bloomsbury Publishing 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 Bloomsbury Publishing with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomsbury Publishing and Griffin Mining.
Diversification Opportunities for Bloomsbury Publishing and Griffin Mining
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bloomsbury and Griffin is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bloomsbury Publishing Plc and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Bloomsbury Publishing 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 Bloomsbury Publishing Plc 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 Bloomsbury Publishing i.e., Bloomsbury Publishing and Griffin Mining go up and down completely randomly.
Pair Corralation between Bloomsbury Publishing and Griffin Mining
Assuming the 90 days trading horizon Bloomsbury Publishing Plc is expected to generate 0.86 times more return on investment than Griffin Mining. However, Bloomsbury Publishing Plc is 1.16 times less risky than Griffin Mining. It trades about -0.01 of its potential returns per unit of risk. Griffin Mining is currently generating about -0.02 per unit of risk. If you would invest 67,200 in Bloomsbury Publishing Plc on November 3, 2024 and sell it today you would lose (600.00) from holding Bloomsbury Publishing Plc or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomsbury Publishing Plc vs. Griffin Mining
Performance |
| Timeline |
| Bloomsbury Publishing Plc |
| Griffin Mining |
Bloomsbury Publishing and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomsbury Publishing and Griffin Mining
The main advantage of trading using opposite Bloomsbury Publishing and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomsbury Publishing 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.| Bloomsbury Publishing vs. Sligro Food Group | Bloomsbury Publishing vs. Associated British Foods | Bloomsbury Publishing vs. Tyson Foods Cl | Bloomsbury Publishing vs. FC Investment Trust |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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