Correlation Between Griffin Mining and Albion Technology
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Albion Technology 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 Albion Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Albion Technology General, you can compare the effects of market volatilities on Griffin Mining and Albion Technology 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 Albion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Albion Technology.
Diversification Opportunities for Griffin Mining and Albion Technology
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Griffin and Albion is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Albion Technology General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albion Technology General 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 Albion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albion Technology General has no effect on the direction of Griffin Mining i.e., Griffin Mining and Albion Technology go up and down completely randomly.
Pair Corralation between Griffin Mining and Albion Technology
Assuming the 90 days trading horizon Griffin Mining is expected to generate 2.42 times more return on investment than Albion Technology. However, Griffin Mining is 2.42 times more volatile than Albion Technology General. It trades about 0.11 of its potential returns per unit of risk. Albion Technology General is currently generating about 0.03 per unit of risk. If you would invest 8,420 in Griffin Mining on September 12, 2024 and sell it today you would earn a total of 5,980 from holding Griffin Mining or generate 71.02% 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. Albion Technology General
Performance |
| Timeline |
| Griffin Mining |
| Albion Technology General |
Griffin Mining and Albion Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Albion Technology
The main advantage of trading using opposite Griffin Mining and Albion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Albion Technology 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 Albion Technology will offset losses from the drop in Albion Technology's long position.| Griffin Mining vs. Givaudan SA | Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Atalaya Mining |
| Albion Technology vs. Samsung Electronics Co | Albion Technology vs. Samsung Electronics Co | Albion Technology vs. Hyundai Motor | Albion Technology vs. Toyota Motor Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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