Correlation Between Griffon and GENERAL
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By analyzing existing cross correlation between Griffon and GENERAL DYNAMICS PORATION, you can compare the effects of market volatilities on Griffon and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and GENERAL.
Diversification Opportunities for Griffon and GENERAL
Excellent diversification
The 3 months correlation between Griffon and GENERAL is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and GENERAL DYNAMICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS PORATION 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS PORATION has no effect on the direction of Griffon i.e., Griffon and GENERAL go up and down completely randomly.
Pair Corralation between Griffon and GENERAL
Considering the 90-day investment horizon Griffon is expected to generate 7.46 times more return on investment than GENERAL. However, Griffon is 7.46 times more volatile than GENERAL DYNAMICS PORATION. It trades about 0.09 of its potential returns per unit of risk. GENERAL DYNAMICS PORATION is currently generating about -0.01 per unit of risk. If you would invest 3,334 in Griffon on September 3, 2024 and sell it today you would earn a total of 5,096 from holding Griffon or generate 152.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Griffon vs. GENERAL DYNAMICS PORATION
Performance |
| Timeline |
| Griffon |
| GENERAL DYNAMICS PORATION |
Griffon and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and GENERAL
The main advantage of trading using opposite Griffon and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| GENERAL vs. The Travelers Companies | GENERAL vs. GE Aerospace | GENERAL vs. Walmart | GENERAL vs. Pfizer Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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