Correlation Between Griffon and Magplane Technology
Can any of the company-specific risk be diversified away by investing in both Griffon and Magplane Technology 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 Magplane Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Magplane Technology, you can compare the effects of market volatilities on Griffon and Magplane Technology 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 Magplane Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Magplane Technology.
Diversification Opportunities for Griffon and Magplane Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Griffon and Magplane is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Magplane Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magplane Technology 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 Magplane Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magplane Technology has no effect on the direction of Griffon i.e., Griffon and Magplane Technology go up and down completely randomly.
Pair Corralation between Griffon and Magplane Technology
If you would invest 4,089 in Griffon on September 12, 2024 and sell it today you would earn a total of 3,918 from holding Griffon or generate 95.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Magplane Technology
Performance |
| Timeline |
| Griffon |
| Magplane Technology |
Griffon and Magplane Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Magplane Technology
The main advantage of trading using opposite Griffon and Magplane Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Magplane Technology 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 Magplane Technology will offset losses from the drop in Magplane Technology's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Magplane Technology vs. SEI Investments | Magplane Technology vs. Mesa Air Group | Magplane Technology vs. Montauk Renewables | Magplane Technology vs. Sun Country Airlines |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |