Correlation Between Griffon and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Griffon and Perseus Mining 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 Perseus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Perseus Mining Limited, you can compare the effects of market volatilities on Griffon and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Perseus Mining.
Diversification Opportunities for Griffon and Perseus Mining
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Griffon and Perseus is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Griffon i.e., Griffon and Perseus Mining go up and down completely randomly.
Pair Corralation between Griffon and Perseus Mining
Considering the 90-day investment horizon Griffon is expected to generate 0.98 times more return on investment than Perseus Mining. However, Griffon is 1.02 times less risky than Perseus Mining. It trades about 0.07 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about 0.04 per unit of risk. If you would invest 6,854 in Griffon on September 3, 2024 and sell it today you would earn a total of 1,576 from holding Griffon or generate 22.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Perseus Mining Limited
Performance |
| Timeline |
| Griffon |
| Perseus Mining |
Griffon and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Perseus Mining
The main advantage of trading using opposite Griffon and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Perseus Mining vs. Harmony Gold Mining | Perseus Mining vs. SPACE | Perseus Mining vs. T Rowe Price | Perseus Mining vs. Ampleforth |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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