Correlation Between Griffon and 00108WAF7
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By analyzing existing cross correlation between Griffon and AEP TEX INC, you can compare the effects of market volatilities on Griffon and 00108WAF7 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 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and 00108WAF7.
Diversification Opportunities for Griffon and 00108WAF7
Modest diversification
The 3 months correlation between Griffon and 00108WAF7 is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC 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 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of Griffon i.e., Griffon and 00108WAF7 go up and down completely randomly.
Pair Corralation between Griffon and 00108WAF7
Considering the 90-day investment horizon Griffon is expected to generate 1.71 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, Griffon is 2.42 times less risky than 00108WAF7. It trades about 0.17 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,193 in AEP TEX INC on November 3, 2024 and sell it today you would earn a total of 475.00 from holding AEP TEX INC or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Griffon vs. AEP TEX INC
Performance |
| Timeline |
| Griffon |
| AEP TEX INC |
Griffon and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and 00108WAF7
The main advantage of trading using opposite Griffon and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7'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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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