Correlation Between Griffon and Falcons Beyond
Can any of the company-specific risk be diversified away by investing in both Griffon and Falcons Beyond 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 Falcons Beyond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Falcons Beyond Global,, you can compare the effects of market volatilities on Griffon and Falcons Beyond 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 Falcons Beyond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Falcons Beyond.
Diversification Opportunities for Griffon and Falcons Beyond
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Griffon and Falcons is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Falcons Beyond Global, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falcons Beyond Global, 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 Falcons Beyond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falcons Beyond Global, has no effect on the direction of Griffon i.e., Griffon and Falcons Beyond go up and down completely randomly.
Pair Corralation between Griffon and Falcons Beyond
Considering the 90-day investment horizon Griffon is expected to generate 0.25 times more return on investment than Falcons Beyond. However, Griffon is 3.94 times less risky than Falcons Beyond. It trades about 0.17 of its potential returns per unit of risk. Falcons Beyond Global, is currently generating about -0.54 per unit of risk. If you would invest 7,197 in Griffon on November 3, 2024 and sell it today you would earn a total of 380.00 from holding Griffon or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Griffon vs. Falcons Beyond Global,
Performance |
| Timeline |
| Griffon |
| Falcons Beyond Global, |
Griffon and Falcons Beyond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Falcons Beyond
The main advantage of trading using opposite Griffon and Falcons Beyond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Falcons Beyond 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 Falcons Beyond will offset losses from the drop in Falcons Beyond's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Falcons Beyond vs. AerCap Holdings NV | Falcons Beyond vs. Multi Ways Holdings | Falcons Beyond vs. The Coca Cola | Falcons Beyond vs. Alta Equipment 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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