Correlation Between Fukuyama Transporting and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Fukuyama Transporting 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 Fukuyama Transporting and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fukuyama Transporting Co and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Fukuyama Transporting 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 Fukuyama Transporting with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fukuyama Transporting and GRIFFIN MINING.
Diversification Opportunities for Fukuyama Transporting and GRIFFIN MINING
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fukuyama and GRIFFIN is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fukuyama Transporting Co and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD and Fukuyama Transporting 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 Fukuyama Transporting Co 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 LTD has no effect on the direction of Fukuyama Transporting i.e., Fukuyama Transporting and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Fukuyama Transporting and GRIFFIN MINING
Assuming the 90 days horizon Fukuyama Transporting is expected to generate 1.75 times less return on investment than GRIFFIN MINING. In addition to that, Fukuyama Transporting is 1.06 times more volatile than GRIFFIN MINING LTD. It trades about 0.05 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.09 per unit of volatility. If you would invest 93.00 in GRIFFIN MINING LTD on September 4, 2024 and sell it today you would earn a total of 78.00 from holding GRIFFIN MINING LTD or generate 83.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fukuyama Transporting Co vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Fukuyama Transporting |
| GRIFFIN MINING LTD |
Fukuyama Transporting and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fukuyama Transporting and GRIFFIN MINING
The main advantage of trading using opposite Fukuyama Transporting and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fukuyama Transporting 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.| Fukuyama Transporting vs. Old Dominion Freight | Fukuyama Transporting vs. Saia Inc | Fukuyama Transporting vs. SCHNEIDER NATLINC CLB | Fukuyama Transporting vs. Seino Holdings Co |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |