Correlation Between Griffin Mining and STMicroelectronics
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and STMicroelectronics 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 STMicroelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and STMicroelectronics NV, you can compare the effects of market volatilities on Griffin Mining and STMicroelectronics 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 STMicroelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and STMicroelectronics.
Diversification Opportunities for Griffin Mining and STMicroelectronics
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Griffin and STMicroelectronics is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and STMicroelectronics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STMicroelectronics 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 STMicroelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STMicroelectronics has no effect on the direction of Griffin Mining i.e., Griffin Mining and STMicroelectronics go up and down completely randomly.
Pair Corralation between Griffin Mining and STMicroelectronics
Assuming the 90 days trading horizon Griffin Mining is expected to generate 0.99 times more return on investment than STMicroelectronics. However, Griffin Mining is 1.01 times less risky than STMicroelectronics. It trades about 0.01 of its potential returns per unit of risk. STMicroelectronics NV is currently generating about -0.16 per unit of risk. If you would invest 14,900 in Griffin Mining on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Griffin Mining or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. STMicroelectronics NV
Performance |
| Timeline |
| Griffin Mining |
| STMicroelectronics |
Griffin Mining and STMicroelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and STMicroelectronics
The main advantage of trading using opposite Griffin Mining and STMicroelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, STMicroelectronics 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 STMicroelectronics will offset losses from the drop in STMicroelectronics' long position.| Griffin Mining vs. TR Property Investment | Griffin Mining vs. X FAB Silicon Foundries | Griffin Mining vs. Monks Investment Trust | Griffin Mining vs. Hansa Investment |
| STMicroelectronics vs. State Street Corp | STMicroelectronics vs. DXC Technology Co | STMicroelectronics vs. Polar Capital Technology | STMicroelectronics vs. Reckitt Benckiser Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |