Correlation Between Griffon and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Griffon and Proficient Auto 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 Proficient Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Proficient Auto Logistics,, you can compare the effects of market volatilities on Griffon and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Proficient Auto.
Diversification Opportunities for Griffon and Proficient Auto
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Griffon and Proficient is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Griffon i.e., Griffon and Proficient Auto go up and down completely randomly.
Pair Corralation between Griffon and Proficient Auto
Considering the 90-day investment horizon Griffon is expected to generate 0.77 times more return on investment than Proficient Auto. However, Griffon is 1.29 times less risky than Proficient Auto. It trades about 0.03 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about -0.05 per unit of risk. If you would invest 6,734 in Griffon on November 3, 2024 and sell it today you would earn a total of 843.00 from holding Griffon or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 74.6% |
| Values | Daily Returns |
Griffon vs. Proficient Auto Logistics,
Performance |
| Timeline |
| Griffon |
| Proficient Auto Logi |
Griffon and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Proficient Auto
The main advantage of trading using opposite Griffon and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Proficient Auto vs. Amkor Technology | Proficient Auto vs. Kaiser Aluminum | Proficient Auto vs. Chemours Co | Proficient Auto vs. Jabil Circuit |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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