Correlation Between Griffon and Tscan Therapeutics
Can any of the company-specific risk be diversified away by investing in both Griffon and Tscan Therapeutics 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 Tscan Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Tscan Therapeutics, you can compare the effects of market volatilities on Griffon and Tscan Therapeutics 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 Tscan Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Tscan Therapeutics.
Diversification Opportunities for Griffon and Tscan Therapeutics
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Griffon and Tscan is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Tscan Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tscan Therapeutics 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 Tscan Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tscan Therapeutics has no effect on the direction of Griffon i.e., Griffon and Tscan Therapeutics go up and down completely randomly.
Pair Corralation between Griffon and Tscan Therapeutics
Considering the 90-day investment horizon Griffon is expected to generate 0.79 times more return on investment than Tscan Therapeutics. However, Griffon is 1.26 times less risky than Tscan Therapeutics. It trades about 0.17 of its potential returns per unit of risk. Tscan Therapeutics is currently generating about -0.03 per unit of risk. If you would invest 6,270 in Griffon on August 31, 2024 and sell it today you would earn a total of 2,081 from holding Griffon or generate 33.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Tscan Therapeutics
Performance |
| Timeline |
| Griffon |
| Tscan Therapeutics |
Griffon and Tscan Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Tscan Therapeutics
The main advantage of trading using opposite Griffon and Tscan Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Tscan Therapeutics 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 Tscan Therapeutics will offset losses from the drop in Tscan Therapeutics' long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Tscan Therapeutics vs. Apellis Pharmaceuticals | Tscan Therapeutics vs. Iteos Therapeutics | Tscan Therapeutics vs. Day One Biopharmaceuticals | Tscan Therapeutics vs. Acumen Pharmaceuticals |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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