Correlation Between DICKER DATA and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both DICKER DATA 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 DICKER DATA and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DICKER DATA LTD and GRIFFIN MINING LTD, you can compare the effects of market volatilities on DICKER DATA 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 DICKER DATA with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of DICKER DATA and GRIFFIN MINING.
Diversification Opportunities for DICKER DATA and GRIFFIN MINING
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DICKER and GRIFFIN is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding DICKER DATA LTD 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 DICKER DATA 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 DICKER DATA LTD 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 DICKER DATA i.e., DICKER DATA and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between DICKER DATA and GRIFFIN MINING
Assuming the 90 days horizon DICKER DATA is expected to generate 18.55 times less return on investment than GRIFFIN MINING. In addition to that, DICKER DATA is 1.07 times more volatile than GRIFFIN MINING LTD. It trades about 0.0 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.08 per unit of volatility. If you would invest 80.00 in GRIFFIN MINING LTD on September 3, 2024 and sell it today you would earn a total of 91.00 from holding GRIFFIN MINING LTD or generate 113.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DICKER DATA LTD vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| DICKER DATA LTD |
| GRIFFIN MINING LTD |
DICKER DATA and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DICKER DATA and GRIFFIN MINING
The main advantage of trading using opposite DICKER DATA and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DICKER DATA 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.| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. INNELEC MULTIMMINHEO153 |
| GRIFFIN MINING vs. Cardinal Health | GRIFFIN MINING vs. ALERION CLEANPOWER | GRIFFIN MINING vs. Clean Energy Fuels | GRIFFIN MINING vs. FEMALE HEALTH |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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