Correlation Between Griffon and Jewett Cameron
Can any of the company-specific risk be diversified away by investing in both Griffon and Jewett Cameron 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 Jewett Cameron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Jewett Cameron Trading, you can compare the effects of market volatilities on Griffon and Jewett Cameron 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 Jewett Cameron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Jewett Cameron.
Diversification Opportunities for Griffon and Jewett Cameron
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Griffon and Jewett is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Jewett Cameron Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jewett Cameron Trading 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 Jewett Cameron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jewett Cameron Trading has no effect on the direction of Griffon i.e., Griffon and Jewett Cameron go up and down completely randomly.
Pair Corralation between Griffon and Jewett Cameron
Considering the 90-day investment horizon Griffon is expected to generate 1.18 times more return on investment than Jewett Cameron. However, Griffon is 1.18 times more volatile than Jewett Cameron Trading. It trades about 0.06 of its potential returns per unit of risk. Jewett Cameron Trading is currently generating about -0.04 per unit of risk. If you would invest 6,934 in Griffon on September 3, 2024 and sell it today you would earn a total of 1,496 from holding Griffon or generate 21.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Jewett Cameron Trading
Performance |
| Timeline |
| Griffon |
| Jewett Cameron Trading |
Griffon and Jewett Cameron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Jewett Cameron
The main advantage of trading using opposite Griffon and Jewett Cameron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Jewett Cameron 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 Jewett Cameron will offset losses from the drop in Jewett Cameron's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Jewett Cameron vs. Analog Devices | Jewett Cameron vs. Sligro Food Group | Jewett Cameron vs. Tyson Foods | Jewett Cameron vs. Advanced Micro Devices |
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.
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