Correlation Between Griffon and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Griffon and Cresud SACIF 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 Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Cresud SACIF y, you can compare the effects of market volatilities on Griffon and Cresud SACIF 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 Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Cresud SACIF.
Diversification Opportunities for Griffon and Cresud SACIF
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Griffon and Cresud is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y 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 Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Griffon i.e., Griffon and Cresud SACIF go up and down completely randomly.
Pair Corralation between Griffon and Cresud SACIF
Considering the 90-day investment horizon Griffon is expected to generate 1.76 times less return on investment than Cresud SACIF. In addition to that, Griffon is 1.34 times more volatile than Cresud SACIF y. It trades about 0.07 of its total potential returns per unit of risk. Cresud SACIF y is currently generating about 0.16 per unit of volatility. If you would invest 827.00 in Cresud SACIF y on September 3, 2024 and sell it today you would earn a total of 466.00 from holding Cresud SACIF y or generate 56.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Cresud SACIF y
Performance |
| Timeline |
| Griffon |
| Cresud SACIF y |
Griffon and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Cresud SACIF
The main advantage of trading using opposite Griffon and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Cresud SACIF vs. Steel Partners Holdings | Cresud SACIF vs. Compass Diversified | Cresud SACIF vs. Brookfield Business Partners | Cresud SACIF vs. Matthews International |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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