Correlation Between FibroBiologics, Common and Griffon
Can any of the company-specific risk be diversified away by investing in both FibroBiologics, Common 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 FibroBiologics, Common and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibroBiologics, Common Stock and Griffon, you can compare the effects of market volatilities on FibroBiologics, Common 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 FibroBiologics, Common with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibroBiologics, Common and Griffon.
Diversification Opportunities for FibroBiologics, Common and Griffon
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FibroBiologics, and Griffon is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding FibroBiologics, Common Stock and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and FibroBiologics, Common 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 FibroBiologics, Common Stock 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 FibroBiologics, Common i.e., FibroBiologics, Common and Griffon go up and down completely randomly.
Pair Corralation between FibroBiologics, Common and Griffon
Given the investment horizon of 90 days FibroBiologics, Common Stock is expected to under-perform the Griffon. In addition to that, FibroBiologics, Common is 4.88 times more volatile than Griffon. It trades about -0.03 of its total potential returns per unit of risk. Griffon is currently generating about 0.07 per unit of volatility. If you would invest 3,608 in Griffon on October 1, 2024 and sell it today you would earn a total of 3,577 from holding Griffon or generate 99.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 46.68% |
| Values | Daily Returns |
FibroBiologics, Common Stock vs. Griffon
Performance |
| Timeline |
| FibroBiologics, Common |
| Griffon |
FibroBiologics, Common and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibroBiologics, Common and Griffon
The main advantage of trading using opposite FibroBiologics, Common and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibroBiologics, Common 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.| FibroBiologics, Common vs. First Watch Restaurant | FibroBiologics, Common vs. Avient Corp | FibroBiologics, Common vs. Olympic Steel | FibroBiologics, Common vs. Stepan Company |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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