Correlation Between Griffon and FEDEX
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By analyzing existing cross correlation between Griffon and FEDEX P 455, you can compare the effects of market volatilities on Griffon and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and FEDEX.
Diversification Opportunities for Griffon and FEDEX
Good diversification
The 3 months correlation between Griffon and FEDEX is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and FEDEX P 455 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 455 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 455 has no effect on the direction of Griffon i.e., Griffon and FEDEX go up and down completely randomly.
Pair Corralation between Griffon and FEDEX
Considering the 90-day investment horizon Griffon is expected to generate 2.28 times more return on investment than FEDEX. However, Griffon is 2.28 times more volatile than FEDEX P 455. It trades about 0.3 of its potential returns per unit of risk. FEDEX P 455 is currently generating about -0.11 per unit of risk. If you would invest 6,339 in Griffon on September 4, 2024 and sell it today you would earn a total of 1,927 from holding Griffon or generate 30.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. FEDEX P 455
Performance |
| Timeline |
| Griffon |
| FEDEX P 455 |
Griffon and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and FEDEX
The main advantage of trading using opposite Griffon and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX'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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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