Correlation Between Griffin Mining and Givaudan
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Givaudan 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 Givaudan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Givaudan SA, you can compare the effects of market volatilities on Griffin Mining and Givaudan 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 Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Givaudan.
Diversification Opportunities for Griffin Mining and Givaudan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Griffin and Givaudan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Givaudan SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA 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 Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA has no effect on the direction of Griffin Mining i.e., Griffin Mining and Givaudan go up and down completely randomly.
Pair Corralation between Griffin Mining and Givaudan
Assuming the 90 days trading horizon Griffin Mining is expected to generate 2.08 times more return on investment than Givaudan. However, Griffin Mining is 2.08 times more volatile than Givaudan SA. It trades about -0.08 of its potential returns per unit of risk. Givaudan SA is currently generating about -0.25 per unit of risk. If you would invest 15,800 in Griffin Mining on September 12, 2024 and sell it today you would lose (1,400) from holding Griffin Mining or give up 8.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. Givaudan SA
Performance |
| Timeline |
| Griffin Mining |
| Givaudan SA |
Griffin Mining and Givaudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Givaudan
The main advantage of trading using opposite Griffin Mining and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.| Griffin Mining vs. Givaudan SA | Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Atalaya Mining |
| Givaudan vs. Systemair AB | Givaudan vs. Host Hotels Resorts | Givaudan vs. Park Hotels Resorts | Givaudan vs. InterContinental Hotels 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |