Correlation Between Griffon and 51Talk Online
Can any of the company-specific risk be diversified away by investing in both Griffon and 51Talk Online 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 51Talk Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and 51Talk Online Education, you can compare the effects of market volatilities on Griffon and 51Talk Online 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 51Talk Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and 51Talk Online.
Diversification Opportunities for Griffon and 51Talk Online
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Griffon and 51Talk is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and 51Talk Online Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 51Talk Online Education 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 51Talk Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 51Talk Online Education has no effect on the direction of Griffon i.e., Griffon and 51Talk Online go up and down completely randomly.
Pair Corralation between Griffon and 51Talk Online
Considering the 90-day investment horizon Griffon is expected to generate 1.26 times more return on investment than 51Talk Online. However, Griffon is 1.26 times more volatile than 51Talk Online Education. It trades about 0.33 of its potential returns per unit of risk. 51Talk Online Education is currently generating about -0.27 per unit of risk. If you would invest 6,318 in Griffon on September 2, 2024 and sell it today you would earn a total of 2,112 from holding Griffon or generate 33.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. 51Talk Online Education
Performance |
| Timeline |
| Griffon |
| 51Talk Online Education |
Griffon and 51Talk Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and 51Talk Online
The main advantage of trading using opposite Griffon and 51Talk Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, 51Talk Online 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 51Talk Online will offset losses from the drop in 51Talk Online's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| 51Talk Online vs. American Public Education | 51Talk Online vs. ATA Creativity Global | 51Talk Online vs. Cogna Educacao SA | 51Talk Online vs. Adtalem Global Education |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |