Correlation Between Gold Road and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Gold Road 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 Gold Road and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Road Resources and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Gold Road 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 Gold Road with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and GRIFFIN MINING.
Diversification Opportunities for Gold Road and GRIFFIN MINING
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gold and GRIFFIN is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources 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 Gold Road 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 Gold Road Resources 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 Gold Road i.e., Gold Road and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Gold Road and GRIFFIN MINING
Assuming the 90 days horizon Gold Road Resources is expected to generate 0.96 times more return on investment than GRIFFIN MINING. However, Gold Road Resources is 1.04 times less risky than GRIFFIN MINING. It trades about 0.12 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.05 per unit of risk. If you would invest 95.00 in Gold Road Resources on November 28, 2024 and sell it today you would earn a total of 60.00 from holding Gold Road Resources or generate 63.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Road Resources vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Gold Road Resources |
| GRIFFIN MINING LTD |
Gold Road and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Road and GRIFFIN MINING
The main advantage of trading using opposite Gold Road and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Road 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.| Gold Road vs. G III APPAREL GROUP | Gold Road vs. ONWARD MEDICAL BV | Gold Road vs. MEDICAL FACILITIES NEW | Gold Road vs. Zoom Video Communications |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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