Correlation Between Griffon and Whitbread Plc
Can any of the company-specific risk be diversified away by investing in both Griffon and Whitbread Plc 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 Whitbread Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Whitbread plc, you can compare the effects of market volatilities on Griffon and Whitbread Plc 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 Whitbread Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Whitbread Plc.
Diversification Opportunities for Griffon and Whitbread Plc
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Griffon and Whitbread is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Whitbread plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitbread plc 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 Whitbread Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitbread plc has no effect on the direction of Griffon i.e., Griffon and Whitbread Plc go up and down completely randomly.
Pair Corralation between Griffon and Whitbread Plc
Considering the 90-day investment horizon Griffon is expected to generate 1.11 times more return on investment than Whitbread Plc. However, Griffon is 1.11 times more volatile than Whitbread plc. It trades about 0.07 of its potential returns per unit of risk. Whitbread plc is currently generating about 0.03 per unit of risk. If you would invest 3,487 in Griffon on October 11, 2024 and sell it today you would earn a total of 3,729 from holding Griffon or generate 106.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.04% |
| Values | Daily Returns |
Griffon vs. Whitbread plc
Performance |
| Timeline |
| Griffon |
| Whitbread plc |
Griffon and Whitbread Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Whitbread Plc
The main advantage of trading using opposite Griffon and Whitbread Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Whitbread Plc 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 Whitbread Plc will offset losses from the drop in Whitbread Plc's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Whitbread Plc vs. Keurig Dr Pepper | Whitbread Plc vs. China Tontine Wines | Whitbread Plc vs. Naked Wines plc | Whitbread Plc vs. Galaxy Gaming |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |