Correlation Between Griffon and SOUTHERN
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By analyzing existing cross correlation between Griffon and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Griffon and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and SOUTHERN.
Diversification Opportunities for Griffon and SOUTHERN
Very good diversification
The 3 months correlation between Griffon and SOUTHERN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Griffon i.e., Griffon and SOUTHERN go up and down completely randomly.
Pair Corralation between Griffon and SOUTHERN
Considering the 90-day investment horizon Griffon is expected to generate 10.99 times less return on investment than SOUTHERN. But when comparing it to its historical volatility, Griffon is 20.82 times less risky than SOUTHERN. It trades about 0.09 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,026 in SOUTHERN CALIF EDISON on September 5, 2024 and sell it today you would lose (451.00) from holding SOUTHERN CALIF EDISON or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.33% |
| Values | Daily Returns |
Griffon vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Griffon |
| SOUTHERN CALIF EDISON |
Griffon and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and SOUTHERN
The main advantage of trading using opposite Griffon and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| SOUTHERN vs. Park Ohio Holdings | SOUTHERN vs. Primoris Services | SOUTHERN vs. Griffon | SOUTHERN vs. AKITA Drilling |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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