Correlation Between Griffon and Fuquan Capital
Can any of the company-specific risk be diversified away by investing in both Griffon and Fuquan Capital 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 Fuquan Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Fuquan Capital Management, you can compare the effects of market volatilities on Griffon and Fuquan Capital 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 Fuquan Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Fuquan Capital.
Diversification Opportunities for Griffon and Fuquan Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Griffon and Fuquan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Fuquan Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuquan Capital Management 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 Fuquan Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuquan Capital Management has no effect on the direction of Griffon i.e., Griffon and Fuquan Capital go up and down completely randomly.
Pair Corralation between Griffon and Fuquan Capital
If you would invest 4,002 in Griffon on September 4, 2024 and sell it today you would earn a total of 4,264 from holding Griffon or generate 106.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Griffon vs. Fuquan Capital Management
Performance |
| Timeline |
| Griffon |
| Fuquan Capital Management |
Griffon and Fuquan Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Fuquan Capital
The main advantage of trading using opposite Griffon and Fuquan Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Fuquan Capital 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 Fuquan Capital will offset losses from the drop in Fuquan Capital's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Fuquan Capital vs. Space Communication | Fuquan Capital vs. Saia Inc | Fuquan Capital vs. Here Media | Fuquan Capital vs. Sphere Entertainment 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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