Correlation Between Griffon and 40427LAB0
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By analyzing existing cross correlation between Griffon and HSBC 10176, you can compare the effects of market volatilities on Griffon and 40427LAB0 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 40427LAB0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and 40427LAB0.
Diversification Opportunities for Griffon and 40427LAB0
Very weak diversification
The 3 months correlation between Griffon and 40427LAB0 is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and HSBC 10176 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC 10176 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 40427LAB0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC 10176 has no effect on the direction of Griffon i.e., Griffon and 40427LAB0 go up and down completely randomly.
Pair Corralation between Griffon and 40427LAB0
Considering the 90-day investment horizon Griffon is expected to generate 1.84 times more return on investment than 40427LAB0. However, Griffon is 1.84 times more volatile than HSBC 10176. It trades about 0.09 of its potential returns per unit of risk. HSBC 10176 is currently generating about 0.08 per unit of risk. If you would invest 3,327 in Griffon on September 2, 2024 and sell it today you would earn a total of 5,103 from holding Griffon or generate 153.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 12.9% |
| Values | Daily Returns |
Griffon vs. HSBC 10176
Performance |
| Timeline |
| Griffon |
| HSBC 10176 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Griffon and 40427LAB0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and 40427LAB0
The main advantage of trading using opposite Griffon and 40427LAB0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, 40427LAB0 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 40427LAB0 will offset losses from the drop in 40427LAB0's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| 40427LAB0 vs. Reservoir Media | 40427LAB0 vs. Griffon | 40427LAB0 vs. ChampionX | 40427LAB0 vs. Sphere Entertainment Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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