Correlation Between Dream Finders and Griffon
Can any of the company-specific risk be diversified away by investing in both Dream Finders 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 Dream Finders and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dream Finders Homes and Griffon, you can compare the effects of market volatilities on Dream Finders 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 Dream Finders with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Finders and Griffon.
Diversification Opportunities for Dream Finders and Griffon
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dream and Griffon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Dream Finders Homes and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Dream Finders 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 Dream Finders Homes 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 Dream Finders i.e., Dream Finders and Griffon go up and down completely randomly.
Pair Corralation between Dream Finders and Griffon
Considering the 90-day investment horizon Dream Finders is expected to generate 1.42 times less return on investment than Griffon. In addition to that, Dream Finders is 1.48 times more volatile than Griffon. It trades about 0.05 of its total potential returns per unit of risk. Griffon is currently generating about 0.1 per unit of volatility. If you would invest 3,580 in Griffon on August 31, 2024 and sell it today you would earn a total of 4,850 from holding Griffon or generate 135.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dream Finders Homes vs. Griffon
Performance |
| Timeline |
| Dream Finders Homes |
| Griffon |
Dream Finders and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dream Finders and Griffon
The main advantage of trading using opposite Dream Finders and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dream Finders 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.| Dream Finders vs. Hovnanian Enterprises | Dream Finders vs. Taylor Morn Home | Dream Finders vs. KB Home | Dream Finders vs. MI Homes |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |