Correlation Between Everus Construction and Griffon
Can any of the company-specific risk be diversified away by investing in both Everus Construction 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 Everus Construction and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everus Construction Group and Griffon, you can compare the effects of market volatilities on Everus Construction 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 Everus Construction with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everus Construction and Griffon.
Diversification Opportunities for Everus Construction and Griffon
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Everus and Griffon is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Everus Construction Group and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Everus Construction 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 Everus Construction Group 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 Everus Construction i.e., Everus Construction and Griffon go up and down completely randomly.
Pair Corralation between Everus Construction and Griffon
Considering the 90-day investment horizon Everus Construction Group is expected to generate 1.3 times more return on investment than Griffon. However, Everus Construction is 1.3 times more volatile than Griffon. It trades about 0.13 of its potential returns per unit of risk. Griffon is currently generating about 0.12 per unit of risk. If you would invest 5,370 in Everus Construction Group on November 2, 2024 and sell it today you would earn a total of 1,679 from holding Everus Construction Group or generate 31.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Everus Construction Group vs. Griffon
Performance |
| Timeline |
| Everus Construction |
| Griffon |
Everus Construction and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everus Construction and Griffon
The main advantage of trading using opposite Everus Construction and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everus Construction 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.| Everus Construction vs. Todos Medical | Everus Construction vs. Alto Neuroscience, | Everus Construction vs. Aquestive Therapeutics | Everus Construction vs. Apogee Therapeutics, Common |
| 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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