Correlation Between Griffon and Sojitz
Can any of the company-specific risk be diversified away by investing in both Griffon and Sojitz 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 Sojitz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Sojitz, you can compare the effects of market volatilities on Griffon and Sojitz 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 Sojitz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Sojitz.
Diversification Opportunities for Griffon and Sojitz
Pay attention - limited upside
The 3 months correlation between Griffon and Sojitz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Sojitz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sojitz 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 Sojitz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sojitz has no effect on the direction of Griffon i.e., Griffon and Sojitz go up and down completely randomly.
Pair Corralation between Griffon and Sojitz
If you would invest 3,972 in Griffon on September 3, 2024 and sell it today you would earn a total of 4,294 from holding Griffon or generate 108.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Griffon vs. Sojitz
Performance |
| Timeline |
| Griffon |
| Sojitz |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Griffon and Sojitz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Sojitz
The main advantage of trading using opposite Griffon and Sojitz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Sojitz 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 Sojitz will offset losses from the drop in Sojitz's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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