Correlation Between Griffon and Atomic Minerals
Can any of the company-specific risk be diversified away by investing in both Griffon and Atomic Minerals 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 Atomic Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Atomic Minerals, you can compare the effects of market volatilities on Griffon and Atomic Minerals 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 Atomic Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Atomic Minerals.
Diversification Opportunities for Griffon and Atomic Minerals
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Griffon and Atomic is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Atomic Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomic Minerals 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 Atomic Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomic Minerals has no effect on the direction of Griffon i.e., Griffon and Atomic Minerals go up and down completely randomly.
Pair Corralation between Griffon and Atomic Minerals
Considering the 90-day investment horizon Griffon is expected to generate 0.37 times more return on investment than Atomic Minerals. However, Griffon is 2.69 times less risky than Atomic Minerals. It trades about 0.11 of its potential returns per unit of risk. Atomic Minerals is currently generating about -0.03 per unit of risk. If you would invest 4,171 in Griffon on September 1, 2024 and sell it today you would earn a total of 4,259 from holding Griffon or generate 102.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Griffon vs. Atomic Minerals
Performance |
| Timeline |
| Griffon |
| Atomic Minerals |
Griffon and Atomic Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Atomic Minerals
The main advantage of trading using opposite Griffon and Atomic Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Atomic Minerals 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 Atomic Minerals will offset losses from the drop in Atomic Minerals' long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Atomic Minerals vs. Asure Software | Atomic Minerals vs. HUTCHMED DRC | Atomic Minerals vs. Neogen | Atomic Minerals vs. Sonida Senior Living |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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