Correlation Between Griffon and COMSovereign Holding
Can any of the company-specific risk be diversified away by investing in both Griffon and COMSovereign Holding 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 COMSovereign Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and COMSovereign Holding Corp, you can compare the effects of market volatilities on Griffon and COMSovereign Holding 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 COMSovereign Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and COMSovereign Holding.
Diversification Opportunities for Griffon and COMSovereign Holding
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Griffon and COMSovereign is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and COMSovereign Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMSovereign Holding Corp 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 COMSovereign Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMSovereign Holding Corp has no effect on the direction of Griffon i.e., Griffon and COMSovereign Holding go up and down completely randomly.
Pair Corralation between Griffon and COMSovereign Holding
If you would invest 6,985 in Griffon on August 29, 2024 and sell it today you would earn a total of 1,452 from holding Griffon or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Griffon vs. COMSovereign Holding Corp
Performance |
| Timeline |
| Griffon |
| COMSovereign Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Griffon and COMSovereign Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and COMSovereign Holding
The main advantage of trading using opposite Griffon and COMSovereign Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, COMSovereign Holding 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 COMSovereign Holding will offset losses from the drop in COMSovereign Holding's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| COMSovereign Holding vs. Highway Holdings Limited | COMSovereign Holding vs. Bank of America | COMSovereign Holding vs. Lion One Metals | COMSovereign Holding vs. Griffon |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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