Correlation Between Griffon and Sabre Corpo
Can any of the company-specific risk be diversified away by investing in both Griffon and Sabre Corpo 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 Sabre Corpo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Sabre Corpo, you can compare the effects of market volatilities on Griffon and Sabre Corpo 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 Sabre Corpo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Sabre Corpo.
Diversification Opportunities for Griffon and Sabre Corpo
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Griffon and Sabre is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Sabre Corpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabre Corpo 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 Sabre Corpo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabre Corpo has no effect on the direction of Griffon i.e., Griffon and Sabre Corpo go up and down completely randomly.
Pair Corralation between Griffon and Sabre Corpo
Considering the 90-day investment horizon Griffon is expected to generate 0.69 times more return on investment than Sabre Corpo. However, Griffon is 1.45 times less risky than Sabre Corpo. It trades about 0.1 of its potential returns per unit of risk. Sabre Corpo is currently generating about 0.02 per unit of risk. If you would invest 4,561 in Griffon on August 24, 2024 and sell it today you would earn a total of 3,567 from holding Griffon or generate 78.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Sabre Corpo
Performance |
| Timeline |
| Griffon |
| Sabre Corpo |
Griffon and Sabre Corpo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Sabre Corpo
The main advantage of trading using opposite Griffon and Sabre Corpo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Sabre Corpo 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 Sabre Corpo will offset losses from the drop in Sabre Corpo's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |