Correlation Between Griffon and Zura Bio
Can any of the company-specific risk be diversified away by investing in both Griffon and Zura Bio 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 Zura Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and Zura Bio Limited, you can compare the effects of market volatilities on Griffon and Zura Bio 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 Zura Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Zura Bio.
Diversification Opportunities for Griffon and Zura Bio
Excellent diversification
The 3 months correlation between Griffon and Zura is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Zura Bio Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zura Bio Limited 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 Zura Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zura Bio Limited has no effect on the direction of Griffon i.e., Griffon and Zura Bio go up and down completely randomly.
Pair Corralation between Griffon and Zura Bio
Considering the 90-day investment horizon Griffon is expected to generate 0.31 times more return on investment than Zura Bio. However, Griffon is 3.22 times less risky than Zura Bio. It trades about 0.17 of its potential returns per unit of risk. Zura Bio Limited is currently generating about -0.2 per unit of risk. If you would invest 7,197 in Griffon on November 3, 2024 and sell it today you would earn a total of 380.00 from holding Griffon or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Griffon vs. Zura Bio Limited
Performance |
| Timeline |
| Griffon |
| Zura Bio Limited |
Griffon and Zura Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Zura Bio
The main advantage of trading using opposite Griffon and Zura Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Zura Bio 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 Zura Bio will offset losses from the drop in Zura Bio's long position.| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
| Zura Bio vs. Delek Drilling | Zura Bio vs. Major Drilling Group | Zura Bio vs. Mesa Air Group | Zura Bio vs. Wizz Air 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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