Correlation Between Griffon and Via Renewables
Can any of the company-specific risk be diversified away by investing in both Griffon and Via Renewables at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Griffon and Via Renewables into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Via Renewables, you can compare the effects of market volatilities on Griffon and Via Renewables 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 Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Via Renewables.
Diversification Opportunities for Griffon and Via Renewables
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Griffon and Via is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables 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 Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Griffon i.e., Griffon and Via Renewables go up and down completely randomly.
Pair Corralation between Griffon and Via Renewables
Considering the 90-day investment horizon Griffon is expected to generate 1.01 times more return on investment than Via Renewables. However, Griffon is 1.01 times more volatile than Via Renewables. It trades about 0.1 of its potential returns per unit of risk. Via Renewables is currently generating about 0.07 per unit of risk. If you would invest 3,634 in Griffon on September 2, 2024 and sell it today you would earn a total of 4,796 from holding Griffon or generate 131.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. Via Renewables
Performance |
| Timeline |
| Griffon |
| Via Renewables |
Griffon and Via Renewables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Via Renewables
The main advantage of trading using opposite Griffon and Via Renewables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Via Renewables 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 Via Renewables will offset losses from the drop in Via Renewables' long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |