Correlation Between Griffon and Lionsgate Studios
Can any of the company-specific risk be diversified away by investing in both Griffon and Lionsgate Studios 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 Lionsgate Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Lionsgate Studios Corp, you can compare the effects of market volatilities on Griffon and Lionsgate Studios 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 Lionsgate Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Lionsgate Studios.
Diversification Opportunities for Griffon and Lionsgate Studios
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Griffon and Lionsgate is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Lionsgate Studios Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lionsgate Studios 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 Lionsgate Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lionsgate Studios Corp has no effect on the direction of Griffon i.e., Griffon and Lionsgate Studios go up and down completely randomly.
Pair Corralation between Griffon and Lionsgate Studios
Considering the 90-day investment horizon Griffon is expected to generate 0.47 times more return on investment than Lionsgate Studios. However, Griffon is 2.15 times less risky than Lionsgate Studios. It trades about 0.07 of its potential returns per unit of risk. Lionsgate Studios Corp is currently generating about 0.01 per unit of risk. If you would invest 3,658 in Griffon on October 7, 2024 and sell it today you would earn a total of 3,629 from holding Griffon or generate 99.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Lionsgate Studios Corp
Performance |
| Timeline |
| Griffon |
| Lionsgate Studios Corp |
Griffon and Lionsgate Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Lionsgate Studios
The main advantage of trading using opposite Griffon and Lionsgate Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Lionsgate Studios 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 Lionsgate Studios will offset losses from the drop in Lionsgate Studios' long position.| Griffon vs. Matthews International | Griffon vs. Brookfield Business Partners | Griffon vs. MDU Resources Group | Griffon vs. Steel Partners Holdings |
| Lionsgate Studios vs. Apogee Therapeutics, Common | Lionsgate Studios vs. Regeneron Pharmaceuticals | Lionsgate Studios vs. Mangazeya Mining | Lionsgate Studios vs. Summit Materials |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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