Correlation Between Griffon and DOMINION
Specify exactly 2 symbols:
By analyzing existing cross correlation between Griffon and DOMINION RES INC, you can compare the effects of market volatilities on Griffon and DOMINION 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 DOMINION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and DOMINION.
Diversification Opportunities for Griffon and DOMINION
Very good diversification
The 3 months correlation between Griffon and DOMINION is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and DOMINION RES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOMINION RES 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 DOMINION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOMINION RES INC has no effect on the direction of Griffon i.e., Griffon and DOMINION go up and down completely randomly.
Pair Corralation between Griffon and DOMINION
Considering the 90-day investment horizon Griffon is expected to generate 9.0 times more return on investment than DOMINION. However, Griffon is 9.0 times more volatile than DOMINION RES INC. It trades about 0.3 of its potential returns per unit of risk. DOMINION RES INC is currently generating about 0.05 per unit of risk. If you would invest 6,349 in Griffon on August 31, 2024 and sell it today you would earn a total of 2,002 from holding Griffon or generate 31.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Griffon vs. DOMINION RES INC
Performance |
| Timeline |
| Griffon |
| DOMINION RES INC |
Griffon and DOMINION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and DOMINION
The main advantage of trading using opposite Griffon and DOMINION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, DOMINION 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 DOMINION will offset losses from the drop in DOMINION'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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |