Correlation Between Griffon and Elutia
Can any of the company-specific risk be diversified away by investing in both Griffon and Elutia 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 Elutia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Elutia Inc, you can compare the effects of market volatilities on Griffon and Elutia 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 Elutia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Elutia.
Diversification Opportunities for Griffon and Elutia
Poor diversification
The 3 months correlation between Griffon and Elutia is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Elutia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elutia Inc 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 Elutia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elutia Inc has no effect on the direction of Griffon i.e., Griffon and Elutia go up and down completely randomly.
Pair Corralation between Griffon and Elutia
Considering the 90-day investment horizon Griffon is expected to generate 0.63 times more return on investment than Elutia. However, Griffon is 1.59 times less risky than Elutia. It trades about 0.13 of its potential returns per unit of risk. Elutia Inc is currently generating about -0.01 per unit of risk. If you would invest 6,466 in Griffon on September 12, 2024 and sell it today you would earn a total of 1,519 from holding Griffon or generate 23.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Elutia Inc
Performance |
| Timeline |
| Griffon |
| Elutia Inc |
Griffon and Elutia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Elutia
The main advantage of trading using opposite Griffon and Elutia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Elutia 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 Elutia will offset losses from the drop in Elutia's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Elutia vs. Compania Cervecerias Unidas | Elutia vs. Keurig Dr Pepper | Elutia vs. ScanSource | Elutia vs. Scandinavian Tobacco Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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