Correlation Between Griffon and ASSOC BR
Can any of the company-specific risk be diversified away by investing in both Griffon and ASSOC BR 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 Griffon and ASSOC BR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and ASSOC BR FOODS, you can compare the effects of market volatilities on Griffon and ASSOC BR 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 Griffon with a short position of ASSOC BR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and ASSOC BR.
Diversification Opportunities for Griffon and ASSOC BR
Excellent diversification
The 3 months correlation between Griffon and ASSOC is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and ASSOC BR FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASSOC BR FOODS and Griffon 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 Griffon are associated (or correlated) with ASSOC BR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASSOC BR FOODS has no effect on the direction of Griffon i.e., Griffon and ASSOC BR go up and down completely randomly.
Pair Corralation between Griffon and ASSOC BR
Assuming the 90 days horizon Griffon is expected to generate 1.9 times more return on investment than ASSOC BR. However, Griffon is 1.9 times more volatile than ASSOC BR FOODS. It trades about 0.05 of its potential returns per unit of risk. ASSOC BR FOODS is currently generating about -0.06 per unit of risk. If you would invest 6,120 in Griffon on September 23, 2024 and sell it today you would earn a total of 780.00 from holding Griffon or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. ASSOC BR FOODS
Performance |
| Timeline |
| Griffon |
| ASSOC BR FOODS |
Griffon and ASSOC BR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and ASSOC BR
The main advantage of trading using opposite Griffon and ASSOC BR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, ASSOC BR 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 ASSOC BR will offset losses from the drop in ASSOC BR's long position.| Griffon vs. ASSOC BR FOODS | Griffon vs. SENECA FOODS A | Griffon vs. Astral Foods Limited | Griffon vs. Evolution Mining Limited |
| ASSOC BR vs. Mowi ASA | ASSOC BR vs. LEROY SEAFOOD GRUNSPADR | ASSOC BR vs. Lery Seafood Group | ASSOC BR vs. Nisshin Seifun Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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