Correlation Between Griffon and Ainsworth Game
Can any of the company-specific risk be diversified away by investing in both Griffon and Ainsworth Game 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 Ainsworth Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Ainsworth Game Technology, you can compare the effects of market volatilities on Griffon and Ainsworth Game 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 Ainsworth Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Ainsworth Game.
Diversification Opportunities for Griffon and Ainsworth Game
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Griffon and Ainsworth is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Ainsworth Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainsworth Game Technology 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 Ainsworth Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainsworth Game Technology has no effect on the direction of Griffon i.e., Griffon and Ainsworth Game go up and down completely randomly.
Pair Corralation between Griffon and Ainsworth Game
Considering the 90-day investment horizon Griffon is expected to generate 0.88 times more return on investment than Ainsworth Game. However, Griffon is 1.14 times less risky than Ainsworth Game. It trades about 0.1 of its potential returns per unit of risk. Ainsworth Game Technology is currently generating about -0.03 per unit of risk. If you would invest 3,580 in Griffon on August 31, 2024 and sell it today you would earn a total of 4,850 from holding Griffon or generate 135.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Griffon vs. Ainsworth Game Technology
Performance |
| Timeline |
| Griffon |
| Ainsworth Game Technology |
Griffon and Ainsworth Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Ainsworth Game
The main advantage of trading using opposite Griffon and Ainsworth Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Ainsworth Game 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 Ainsworth Game will offset losses from the drop in Ainsworth Game's long position.| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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