Correlation Between Griffon and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Griffon and Inflection Point 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 Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Inflection Point Acquisition, you can compare the effects of market volatilities on Griffon and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Inflection Point.
Diversification Opportunities for Griffon and Inflection Point
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Griffon and Inflection is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Griffon i.e., Griffon and Inflection Point go up and down completely randomly.
Pair Corralation between Griffon and Inflection Point
Considering the 90-day investment horizon Griffon is expected to generate 12.03 times less return on investment than Inflection Point. But when comparing it to its historical volatility, Griffon is 20.25 times less risky than Inflection Point. It trades about 0.09 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Inflection Point Acquisition on August 24, 2024 and sell it today you would earn a total of 1,086 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.41% |
| Values | Daily Returns |
Griffon vs. Inflection Point Acquisition
Performance |
| Timeline |
| Griffon |
| Inflection Point Acq |
Griffon and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Inflection Point
The main advantage of trading using opposite Griffon and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Inflection Point vs. Aegon NV ADR | Inflection Point vs. NI Holdings | Inflection Point vs. Siriuspoint | Inflection Point vs. Marfrig Global 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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