Correlation Between Griffon and STATE
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By analyzing existing cross correlation between Griffon and STATE STR P, you can compare the effects of market volatilities on Griffon and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and STATE.
Diversification Opportunities for Griffon and STATE
Good diversification
The 3 months correlation between Griffon and STATE is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and STATE STR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STR P 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STR P has no effect on the direction of Griffon i.e., Griffon and STATE go up and down completely randomly.
Pair Corralation between Griffon and STATE
Considering the 90-day investment horizon Griffon is expected to generate 11.65 times more return on investment than STATE. However, Griffon is 11.65 times more volatile than STATE STR P. It trades about 0.3 of its potential returns per unit of risk. STATE STR P is currently generating about -0.22 per unit of risk. If you would invest 6,349 in Griffon on August 31, 2024 and sell it today you would earn a total of 2,002 from holding Griffon or generate 31.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Griffon vs. STATE STR P
Performance |
| Timeline |
| Griffon |
| STATE STR P |
Griffon and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and STATE
The main advantage of trading using opposite Griffon and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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