Correlation Between Forge Global and Gryphon Digital
Can any of the company-specific risk be diversified away by investing in both Forge Global and Gryphon Digital 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 Forge Global and Gryphon Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forge Global Holdings and Gryphon Digital Mining, you can compare the effects of market volatilities on Forge Global and Gryphon Digital 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 Forge Global with a short position of Gryphon Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forge Global and Gryphon Digital.
Diversification Opportunities for Forge Global and Gryphon Digital
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Forge and Gryphon is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Forge Global Holdings and Gryphon Digital Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gryphon Digital Mining and Forge Global 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 Forge Global Holdings are associated (or correlated) with Gryphon Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gryphon Digital Mining has no effect on the direction of Forge Global i.e., Forge Global and Gryphon Digital go up and down completely randomly.
Pair Corralation between Forge Global and Gryphon Digital
Given the investment horizon of 90 days Forge Global Holdings is expected to generate 0.61 times more return on investment than Gryphon Digital. However, Forge Global Holdings is 1.63 times less risky than Gryphon Digital. It trades about 0.02 of its potential returns per unit of risk. Gryphon Digital Mining is currently generating about -0.04 per unit of risk. If you would invest 136.00 in Forge Global Holdings on September 2, 2024 and sell it today you would lose (27.00) from holding Forge Global Holdings or give up 19.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forge Global Holdings vs. Gryphon Digital Mining
Performance |
| Timeline |
| Forge Global Holdings |
| Gryphon Digital Mining |
Forge Global and Gryphon Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forge Global and Gryphon Digital
The main advantage of trading using opposite Forge Global and Gryphon Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forge Global position performs unexpectedly, Gryphon Digital 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 Gryphon Digital will offset losses from the drop in Gryphon Digital's long position.| Forge Global vs. Clearwater Analytics Holdings | Forge Global vs. Expensify | Forge Global vs. Envestnet | Forge Global vs. CS Disco LLC |
| Gryphon Digital vs. Ambev SA ADR | Gryphon Digital vs. Thai Beverage PCL | Gryphon Digital vs. SNDL Inc | Gryphon Digital vs. Westrock Coffee |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets |