Correlation Between Evertz Technologies and Griffon
Can any of the company-specific risk be diversified away by investing in both Evertz Technologies 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 Evertz Technologies and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evertz Technologies Limited and Griffon, you can compare the effects of market volatilities on Evertz Technologies 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 Evertz Technologies with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertz Technologies and Griffon.
Diversification Opportunities for Evertz Technologies and Griffon
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evertz and Griffon is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Evertz Technologies Limited and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Evertz Technologies 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 Evertz Technologies Limited 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 Evertz Technologies i.e., Evertz Technologies and Griffon go up and down completely randomly.
Pair Corralation between Evertz Technologies and Griffon
Assuming the 90 days horizon Evertz Technologies is expected to generate 3.96 times less return on investment than Griffon. In addition to that, Evertz Technologies is 1.48 times more volatile than Griffon. It trades about 0.02 of its total potential returns per unit of risk. Griffon is currently generating about 0.09 per unit of volatility. If you would invest 3,319 in Griffon on August 28, 2024 and sell it today you would earn a total of 5,197 from holding Griffon or generate 156.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 70.59% |
| Values | Daily Returns |
Evertz Technologies Limited vs. Griffon
Performance |
| Timeline |
| Evertz Technologies |
| Griffon |
Evertz Technologies and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evertz Technologies and Griffon
The main advantage of trading using opposite Evertz Technologies and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evertz Technologies 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.| Evertz Technologies vs. Boxlight Corp Class | Evertz Technologies vs. Siyata Mobile | Evertz Technologies vs. ClearOne |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |