Correlation Between Griffon and Grand City
Can any of the company-specific risk be diversified away by investing in both Griffon and Grand City 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 Grand City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Grand City Properties, you can compare the effects of market volatilities on Griffon and Grand City 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 Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Grand City.
Diversification Opportunities for Griffon and Grand City
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Griffon and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties 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 Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Griffon i.e., Griffon and Grand City go up and down completely randomly.
Pair Corralation between Griffon and Grand City
Considering the 90-day investment horizon Griffon is expected to generate 1.76 times more return on investment than Grand City. However, Griffon is 1.76 times more volatile than Grand City Properties. It trades about 0.07 of its potential returns per unit of risk. Grand City Properties is currently generating about -0.02 per unit of risk. If you would invest 3,633 in Griffon on November 1, 2024 and sell it today you would earn a total of 4,135 from holding Griffon or generate 113.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Griffon vs. Grand City Properties
Performance |
| Timeline |
| Griffon |
| Grand City Properties |
Griffon and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Grand City
The main advantage of trading using opposite Griffon and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Grand City vs. Griffon | Grand City vs. Aldel Financial II | Grand City vs. Getty Realty | Grand City vs. BBB Foods |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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