Correlation Between Griffon and Q32 Bio
Can any of the company-specific risk be diversified away by investing in both Griffon and Q32 Bio 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 Q32 Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Q32 Bio, you can compare the effects of market volatilities on Griffon and Q32 Bio 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 Q32 Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Q32 Bio.
Diversification Opportunities for Griffon and Q32 Bio
Excellent diversification
The 3 months correlation between Griffon and Q32 is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Q32 Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q32 Bio 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 Q32 Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q32 Bio has no effect on the direction of Griffon i.e., Griffon and Q32 Bio go up and down completely randomly.
Pair Corralation between Griffon and Q32 Bio
Considering the 90-day investment horizon Griffon is expected to generate 0.28 times more return on investment than Q32 Bio. However, Griffon is 3.6 times less risky than Q32 Bio. It trades about 0.13 of its potential returns per unit of risk. Q32 Bio is currently generating about -0.19 per unit of risk. If you would invest 6,466 in Griffon on September 12, 2024 and sell it today you would earn a total of 1,519 from holding Griffon or generate 23.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Q32 Bio
Performance |
| Timeline |
| Griffon |
| Q32 Bio |
Griffon and Q32 Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Q32 Bio
The main advantage of trading using opposite Griffon and Q32 Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Q32 Bio 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 Q32 Bio will offset losses from the drop in Q32 Bio's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Q32 Bio vs. Independence Realty Trust | Q32 Bio vs. East Africa Metals | Q32 Bio vs. Inflection Point Acquisition | Q32 Bio vs. Cedar Realty Trust |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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