Correlation Between Griffon and FTAI Infrastructure
Can any of the company-specific risk be diversified away by investing in both Griffon and FTAI Infrastructure 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 FTAI Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and FTAI Infrastructure, you can compare the effects of market volatilities on Griffon and FTAI Infrastructure 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 FTAI Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and FTAI Infrastructure.
Diversification Opportunities for Griffon and FTAI Infrastructure
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Griffon and FTAI is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and FTAI Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Infrastructure 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 FTAI Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Infrastructure has no effect on the direction of Griffon i.e., Griffon and FTAI Infrastructure go up and down completely randomly.
Pair Corralation between Griffon and FTAI Infrastructure
Considering the 90-day investment horizon Griffon is expected to generate 0.39 times more return on investment than FTAI Infrastructure. However, Griffon is 2.54 times less risky than FTAI Infrastructure. It trades about 0.22 of its potential returns per unit of risk. FTAI Infrastructure is currently generating about 0.05 per unit of risk. If you would invest 7,200 in Griffon on October 20, 2024 and sell it today you would earn a total of 462.00 from holding Griffon or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. FTAI Infrastructure
Performance |
| Timeline |
| Griffon |
| FTAI Infrastructure |
Griffon and FTAI Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and FTAI Infrastructure
The main advantage of trading using opposite Griffon and FTAI Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, FTAI Infrastructure 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 FTAI Infrastructure will offset losses from the drop in FTAI Infrastructure's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| FTAI Infrastructure vs. Steel Partners Holdings | FTAI Infrastructure vs. Brookfield Business Partners | FTAI Infrastructure vs. Griffon | FTAI Infrastructure vs. Tejon Ranch Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |