Correlation Between Cresud SACIF and Griffon
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF 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 Cresud SACIF and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cresud SACIF y and Griffon, you can compare the effects of market volatilities on Cresud SACIF 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 Cresud SACIF with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Griffon.
Diversification Opportunities for Cresud SACIF and Griffon
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cresud and Griffon is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Cresud SACIF 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 Cresud SACIF y 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 Cresud SACIF i.e., Cresud SACIF and Griffon go up and down completely randomly.
Pair Corralation between Cresud SACIF and Griffon
Assuming the 90 days horizon Cresud SACIF y is expected to generate 0.83 times more return on investment than Griffon. However, Cresud SACIF y is 1.21 times less risky than Griffon. It trades about 0.3 of its potential returns per unit of risk. Griffon is currently generating about 0.15 per unit of risk. If you would invest 790.00 in Cresud SACIF y on August 29, 2024 and sell it today you would earn a total of 444.00 from holding Cresud SACIF y or generate 56.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cresud SACIF y vs. Griffon
Performance |
| Timeline |
| Cresud SACIF y |
| Griffon |
Cresud SACIF and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and Griffon
The main advantage of trading using opposite Cresud SACIF and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF 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.| Cresud SACIF vs. Steel Partners Holdings | Cresud SACIF vs. Compass Diversified | Cresud SACIF vs. Brookfield Business Partners | Cresud SACIF vs. Matthews International |
| 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |