Correlation Between CHIBA BANK and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both CHIBA BANK 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 CHIBA BANK and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHIBA BANK and GRIFFIN MINING LTD, you can compare the effects of market volatilities on CHIBA BANK 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 CHIBA BANK with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHIBA BANK and GRIFFIN MINING.
Diversification Opportunities for CHIBA BANK and GRIFFIN MINING
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CHIBA and GRIFFIN is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding CHIBA BANK 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 CHIBA BANK 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 CHIBA BANK 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 CHIBA BANK i.e., CHIBA BANK and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between CHIBA BANK and GRIFFIN MINING
Assuming the 90 days trading horizon CHIBA BANK is expected to generate 1.28 times more return on investment than GRIFFIN MINING. However, CHIBA BANK is 1.28 times more volatile than GRIFFIN MINING LTD. It trades about 0.31 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.02 per unit of risk. If you would invest 705.00 in CHIBA BANK on September 4, 2024 and sell it today you would earn a total of 105.00 from holding CHIBA BANK or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CHIBA BANK vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| CHIBA BANK |
| GRIFFIN MINING LTD |
CHIBA BANK and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHIBA BANK and GRIFFIN MINING
The main advantage of trading using opposite CHIBA BANK and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHIBA BANK 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.| CHIBA BANK vs. SEALED AIR | CHIBA BANK vs. Dave Busters Entertainment | CHIBA BANK vs. Live Nation Entertainment | CHIBA BANK vs. Universal Entertainment |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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