Correlation Between Griffin Mining and Ion Beam
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Ion Beam 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 Griffin Mining and Ion Beam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Ion Beam Applications, you can compare the effects of market volatilities on Griffin Mining and Ion Beam 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 Griffin Mining with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Ion Beam.
Diversification Opportunities for Griffin Mining and Ion Beam
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Griffin and Ion is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Griffin Mining 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 Griffin Mining are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Griffin Mining i.e., Griffin Mining and Ion Beam go up and down completely randomly.
Pair Corralation between Griffin Mining and Ion Beam
Assuming the 90 days trading horizon Griffin Mining is expected to generate 0.94 times more return on investment than Ion Beam. However, Griffin Mining is 1.06 times less risky than Ion Beam. It trades about 0.07 of its potential returns per unit of risk. Ion Beam Applications is currently generating about -0.02 per unit of risk. If you would invest 9,050 in Griffin Mining on November 7, 2024 and sell it today you would earn a total of 7,350 from holding Griffin Mining or generate 81.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. Ion Beam Applications
Performance |
| Timeline |
| Griffin Mining |
| Ion Beam Applications |
Griffin Mining and Ion Beam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Ion Beam
The main advantage of trading using opposite Griffin Mining and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.| Griffin Mining vs. Infrastrutture Wireless Italiane | Griffin Mining vs. Zegona Communications Plc | Griffin Mining vs. Synthomer plc | Griffin Mining vs. Arrow Electronics |
| Ion Beam vs. Premier Foods PLC | Ion Beam vs. Roadside Real Estate | Ion Beam vs. Bigblu Broadband PLC | Ion Beam vs. Bloomsbury Publishing Plc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |