Correlation Between Griffon and Heramba Electric
Can any of the company-specific risk be diversified away by investing in both Griffon and Heramba Electric 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 Heramba Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Heramba Electric plc, you can compare the effects of market volatilities on Griffon and Heramba Electric 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 Heramba Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Heramba Electric.
Diversification Opportunities for Griffon and Heramba Electric
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Griffon and Heramba is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Heramba Electric plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heramba Electric plc 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 Heramba Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heramba Electric plc has no effect on the direction of Griffon i.e., Griffon and Heramba Electric go up and down completely randomly.
Pair Corralation between Griffon and Heramba Electric
Considering the 90-day investment horizon Griffon is expected to generate 0.5 times more return on investment than Heramba Electric. However, Griffon is 1.98 times less risky than Heramba Electric. It trades about 0.09 of its potential returns per unit of risk. Heramba Electric plc is currently generating about -0.06 per unit of risk. If you would invest 3,191 in Griffon on August 24, 2024 and sell it today you would earn a total of 4,937 from holding Griffon or generate 154.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Heramba Electric plc
Performance |
| Timeline |
| Griffon |
| Heramba Electric plc |
Griffon and Heramba Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Heramba Electric
The main advantage of trading using opposite Griffon and Heramba Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Heramba Electric 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 Heramba Electric will offset losses from the drop in Heramba Electric's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Heramba Electric vs. Bloom Energy Corp | Heramba Electric vs. Kimball Electronics | Heramba Electric vs. Enovix Corp | Heramba Electric vs. Sunrise New Energy |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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