Correlation Between Griffon and SHF Holdings
Can any of the company-specific risk be diversified away by investing in both Griffon and SHF Holdings 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 SHF Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and SHF Holdings, you can compare the effects of market volatilities on Griffon and SHF Holdings 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 SHF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and SHF Holdings.
Diversification Opportunities for Griffon and SHF Holdings
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Griffon and SHF is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and SHF Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHF Holdings 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 SHF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHF Holdings has no effect on the direction of Griffon i.e., Griffon and SHF Holdings go up and down completely randomly.
Pair Corralation between Griffon and SHF Holdings
Considering the 90-day investment horizon Griffon is expected to generate 223.66 times less return on investment than SHF Holdings. But when comparing it to its historical volatility, Griffon is 69.55 times less risky than SHF Holdings. It trades about 0.07 of its potential returns per unit of risk. SHF Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3.89 in SHF Holdings on September 3, 2024 and sell it today you would lose (1.25) from holding SHF Holdings or give up 32.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 74.4% |
| Values | Daily Returns |
Griffon vs. SHF Holdings
Performance |
| Timeline |
| Griffon |
| SHF Holdings |
Griffon and SHF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and SHF Holdings
The main advantage of trading using opposite Griffon and SHF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, SHF Holdings 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 SHF Holdings will offset losses from the drop in SHF Holdings' long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| SHF Holdings vs. Harmony Gold Mining | SHF Holdings vs. Avient Corp | SHF Holdings vs. BW Offshore Limited | SHF Holdings vs. Griffon |
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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