Correlation Between 51Talk Online and Griffon
Can any of the company-specific risk be diversified away by investing in both 51Talk Online 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 51Talk Online and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 51Talk Online Education and Griffon, you can compare the effects of market volatilities on 51Talk Online 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 51Talk Online with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of 51Talk Online and Griffon.
Diversification Opportunities for 51Talk Online and Griffon
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between 51Talk and Griffon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding 51Talk Online Education and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and 51Talk Online 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 51Talk Online Education 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 51Talk Online i.e., 51Talk Online and Griffon go up and down completely randomly.
Pair Corralation between 51Talk Online and Griffon
Considering the 90-day investment horizon 51Talk Online Education is expected to under-perform the Griffon. But the stock apears to be less risky and, when comparing its historical volatility, 51Talk Online Education is 1.26 times less risky than Griffon. The stock trades about -0.27 of its potential returns per unit of risk. The Griffon is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 6,318 in Griffon on September 2, 2024 and sell it today you would earn a total of 2,112 from holding Griffon or generate 33.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
51Talk Online Education vs. Griffon
Performance |
| Timeline |
| 51Talk Online Education |
| Griffon |
51Talk Online and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 51Talk Online and Griffon
The main advantage of trading using opposite 51Talk Online and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 51Talk Online 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.| 51Talk Online vs. American Public Education | 51Talk Online vs. ATA Creativity Global | 51Talk Online vs. Cogna Educacao SA | 51Talk Online vs. Adtalem Global Education |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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