Correlation Between Griffon and PGT Innovations
Can any of the company-specific risk be diversified away by investing in both Griffon and PGT Innovations 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 PGT Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and PGT Innovations, you can compare the effects of market volatilities on Griffon and PGT Innovations 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 PGT Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and PGT Innovations.
Diversification Opportunities for Griffon and PGT Innovations
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Griffon and PGT is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and PGT Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGT Innovations 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 PGT Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGT Innovations has no effect on the direction of Griffon i.e., Griffon and PGT Innovations go up and down completely randomly.
Pair Corralation between Griffon and PGT Innovations
If you would invest 6,436 in Griffon on August 28, 2024 and sell it today you would earn a total of 2,080 from holding Griffon or generate 32.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Griffon vs. PGT Innovations
Performance |
| Timeline |
| Griffon |
| PGT Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Griffon and PGT Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and PGT Innovations
The main advantage of trading using opposite Griffon and PGT Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, PGT Innovations 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 PGT Innovations will offset losses from the drop in PGT Innovations' long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| PGT Innovations vs. Quanex Building Products | PGT Innovations vs. Janus International Group | PGT Innovations vs. Interface | PGT Innovations vs. Apogee Enterprises |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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