Correlation Between Ecclesiastical Insurance and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Ecclesiastical Insurance 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 Ecclesiastical Insurance and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecclesiastical Insurance Office and Griffin Mining, you can compare the effects of market volatilities on Ecclesiastical Insurance 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 Ecclesiastical Insurance with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecclesiastical Insurance and Griffin Mining.
Diversification Opportunities for Ecclesiastical Insurance and Griffin Mining
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ecclesiastical and Griffin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ecclesiastical Insurance Offic and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Ecclesiastical Insurance 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 Ecclesiastical Insurance Office 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 has no effect on the direction of Ecclesiastical Insurance i.e., Ecclesiastical Insurance and Griffin Mining go up and down completely randomly.
Pair Corralation between Ecclesiastical Insurance and Griffin Mining
Assuming the 90 days trading horizon Ecclesiastical Insurance is expected to generate 14.89 times less return on investment than Griffin Mining. But when comparing it to its historical volatility, Ecclesiastical Insurance Office is 2.66 times less risky than Griffin Mining. It trades about 0.02 of its potential returns per unit of risk. Griffin Mining is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 14,200 in Griffin Mining on November 28, 2024 and sell it today you would earn a total of 4,100 from holding Griffin Mining or generate 28.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecclesiastical Insurance Offic vs. Griffin Mining
Performance |
| Timeline |
| Ecclesiastical Insurance |
| Griffin Mining |
Ecclesiastical Insurance and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecclesiastical Insurance and Griffin Mining
The main advantage of trading using opposite Ecclesiastical Insurance and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecclesiastical Insurance 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.| Ecclesiastical Insurance vs. Supermarket Income REIT | Ecclesiastical Insurance vs. Everyman Media Group | Ecclesiastical Insurance vs. LBG Media PLC | Ecclesiastical Insurance vs. Ubisoft Entertainment |
| Griffin Mining vs. Air Products Chemicals | Griffin Mining vs. Cardinal Health | Griffin Mining vs. Planet Fitness Cl | Griffin Mining vs. Systemair AB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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