Correlation Between Coor Service and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Coor Service 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 Coor Service and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Coor Service 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 Coor Service with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and GRIFFIN MINING.
Diversification Opportunities for Coor Service and GRIFFIN MINING
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coor and GRIFFIN is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management 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 Coor Service 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 Coor Service Management 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 Coor Service i.e., Coor Service and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Coor Service and GRIFFIN MINING
Assuming the 90 days horizon Coor Service Management is expected to under-perform the GRIFFIN MINING. In addition to that, Coor Service is 1.61 times more volatile than GRIFFIN MINING LTD. It trades about -0.44 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.04 per unit of volatility. If you would invest 175.00 in GRIFFIN MINING LTD on August 24, 2024 and sell it today you would lose (3.00) from holding GRIFFIN MINING LTD or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coor Service Management vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Coor Service Management |
| GRIFFIN MINING LTD |
Coor Service and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and GRIFFIN MINING
The main advantage of trading using opposite Coor Service and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service 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.| Coor Service vs. Automatic Data Processing | Coor Service vs. Paychex | Coor Service vs. Experian plc | Coor Service vs. Equifax |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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