Correlation Between Griffin Mining and AMG Advanced
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and AMG Advanced 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 AMG Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and AMG Advanced Metallurgical, you can compare the effects of market volatilities on Griffin Mining and AMG Advanced 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 AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and AMG Advanced.
Diversification Opportunities for Griffin Mining and AMG Advanced
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Griffin and AMG is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu 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 AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of Griffin Mining i.e., Griffin Mining and AMG Advanced go up and down completely randomly.
Pair Corralation between Griffin Mining and AMG Advanced
Assuming the 90 days trading horizon Griffin Mining is expected to generate 0.96 times more return on investment than AMG Advanced. However, Griffin Mining is 1.05 times less risky than AMG Advanced. It trades about 0.05 of its potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about 0.02 per unit of risk. If you would invest 15,800 in Griffin Mining on November 28, 2024 and sell it today you would earn a total of 2,500 from holding Griffin Mining or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. AMG Advanced Metallurgical
Performance |
| Timeline |
| Griffin Mining |
| AMG Advanced Metallu |
Griffin Mining and AMG Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and AMG Advanced
The main advantage of trading using opposite Griffin Mining and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced's long position.| Griffin Mining vs. Air Products Chemicals | Griffin Mining vs. Cardinal Health | Griffin Mining vs. Planet Fitness Cl | Griffin Mining vs. Systemair AB |
| AMG Advanced vs. Monster Beverage Corp | AMG Advanced vs. Supermarket Income REIT | AMG Advanced vs. Host Hotels Resorts | AMG Advanced vs. Amedeo Air Four |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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