Correlation Between Griffon and CaliberCos
Can any of the company-specific risk be diversified away by investing in both Griffon and CaliberCos 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 CaliberCos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and CaliberCos Class A, you can compare the effects of market volatilities on Griffon and CaliberCos 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 CaliberCos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and CaliberCos.
Diversification Opportunities for Griffon and CaliberCos
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Griffon and CaliberCos is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and CaliberCos Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CaliberCos Class A 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 CaliberCos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CaliberCos Class A has no effect on the direction of Griffon i.e., Griffon and CaliberCos go up and down completely randomly.
Pair Corralation between Griffon and CaliberCos
Considering the 90-day investment horizon Griffon is expected to under-perform the CaliberCos. But the stock apears to be less risky and, when comparing its historical volatility, Griffon is 2.99 times less risky than CaliberCos. The stock trades about -0.31 of its potential returns per unit of risk. The CaliberCos Class A is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 50.00 in CaliberCos Class A on October 14, 2024 and sell it today you would earn a total of 15.00 from holding CaliberCos Class A or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. CaliberCos Class A
Performance |
| Timeline |
| Griffon |
| CaliberCos Class A |
Griffon and CaliberCos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and CaliberCos
The main advantage of trading using opposite Griffon and CaliberCos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, CaliberCos 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 CaliberCos will offset losses from the drop in CaliberCos' long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| CaliberCos vs. Summit Materials | CaliberCos vs. Aldel Financial II | CaliberCos vs. Village Super Market | CaliberCos 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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