Correlation Between Griffon and MICROSOFT
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By analyzing existing cross correlation between Griffon and MICROSOFT PORATION, you can compare the effects of market volatilities on Griffon and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and MICROSOFT.
Diversification Opportunities for Griffon and MICROSOFT
Modest diversification
The 3 months correlation between Griffon and MICROSOFT is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of Griffon i.e., Griffon and MICROSOFT go up and down completely randomly.
Pair Corralation between Griffon and MICROSOFT
Considering the 90-day investment horizon Griffon is expected to generate 2.7 times more return on investment than MICROSOFT. However, Griffon is 2.7 times more volatile than MICROSOFT PORATION. It trades about 0.09 of its potential returns per unit of risk. MICROSOFT PORATION is currently generating about 0.01 per unit of risk. If you would invest 4,594 in Griffon on September 15, 2024 and sell it today you would earn a total of 3,310 from holding Griffon or generate 72.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.26% |
| Values | Daily Returns |
Griffon vs. MICROSOFT PORATION
Performance |
| Timeline |
| Griffon |
| MICROSOFT PORATION |
Griffon and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and MICROSOFT
The main advantage of trading using opposite Griffon and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT's long position.| Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings | Griffon vs. Steel Partners Holdings |
| MICROSOFT vs. CECO Environmental Corp | MICROSOFT vs. Merit Medical Systems | MICROSOFT vs. Century Aluminum | MICROSOFT vs. Sanyo Special Steel |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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