Correlation Between Griffon and Hyliion Holdings
Can any of the company-specific risk be diversified away by investing in both Griffon and Hyliion Holdings 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 Hyliion Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Hyliion Holdings Corp, you can compare the effects of market volatilities on Griffon and Hyliion Holdings 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 Hyliion Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Hyliion Holdings.
Diversification Opportunities for Griffon and Hyliion Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Griffon and Hyliion is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Hyliion Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyliion Holdings Corp 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 Hyliion Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyliion Holdings Corp has no effect on the direction of Griffon i.e., Griffon and Hyliion Holdings go up and down completely randomly.
Pair Corralation between Griffon and Hyliion Holdings
Considering the 90-day investment horizon Griffon is expected to generate 0.38 times more return on investment than Hyliion Holdings. However, Griffon is 2.64 times less risky than Hyliion Holdings. It trades about 0.05 of its potential returns per unit of risk. Hyliion Holdings Corp is currently generating about -0.06 per unit of risk. If you would invest 7,388 in Griffon on November 18, 2024 and sell it today you would earn a total of 348.00 from holding Griffon or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Hyliion Holdings Corp
Performance |
| Timeline |
| Griffon |
| Hyliion Holdings Corp |
Griffon and Hyliion Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Hyliion Holdings
The main advantage of trading using opposite Griffon and Hyliion Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Hyliion Holdings 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 Hyliion Holdings will offset losses from the drop in Hyliion Holdings' long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Hyliion Holdings vs. Quantumscape Corp | Hyliion Holdings vs. Mobileye Global Class | Hyliion Holdings vs. Innoviz Technologies | Hyliion Holdings vs. Aeva Technologies, Common |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |