Correlation Between Griffin Mining and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Gaztransport 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 Gaztransport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Gaztransport et Technigaz, you can compare the effects of market volatilities on Griffin Mining and Gaztransport 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 Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Gaztransport.
Diversification Opportunities for Griffin Mining and Gaztransport
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Griffin and Gaztransport is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Gaztransport et Technigaz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport et Technigaz 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 Gaztransport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport et Technigaz has no effect on the direction of Griffin Mining i.e., Griffin Mining and Gaztransport go up and down completely randomly.
Pair Corralation between Griffin Mining and Gaztransport
Assuming the 90 days trading horizon Griffin Mining is expected to generate 2.29 times more return on investment than Gaztransport. However, Griffin Mining is 2.29 times more volatile than Gaztransport et Technigaz. It trades about -0.07 of its potential returns per unit of risk. Gaztransport et Technigaz is currently generating about -0.18 per unit of risk. If you would invest 15,100 in Griffin Mining on September 19, 2024 and sell it today you would lose (600.00) from holding Griffin Mining or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. Gaztransport et Technigaz
Performance |
| Timeline |
| Griffin Mining |
| Gaztransport et Technigaz |
Griffin Mining and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Gaztransport
The main advantage of trading using opposite Griffin Mining and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Gaztransport 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 Gaztransport will offset losses from the drop in Gaztransport's long position.| Griffin Mining vs. Systemair AB | Griffin Mining vs. Trainline Plc | Griffin Mining vs. Compagnie Plastic Omnium | Griffin Mining vs. BW Offshore |
| Gaztransport vs. Griffin Mining | Gaztransport vs. McEwen Mining | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Compal Electronics GDR |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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