Correlation Between Griffin Mining and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Anglo Asian 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 Anglo Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Anglo Asian Mining, you can compare the effects of market volatilities on Griffin Mining and Anglo Asian 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 Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Anglo Asian.
Diversification Opportunities for Griffin Mining and Anglo Asian
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Griffin and Anglo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining 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 Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Griffin Mining i.e., Griffin Mining and Anglo Asian go up and down completely randomly.
Pair Corralation between Griffin Mining and Anglo Asian
Assuming the 90 days trading horizon Griffin Mining is expected to generate 1.32 times more return on investment than Anglo Asian. However, Griffin Mining is 1.32 times more volatile than Anglo Asian Mining. It trades about 0.05 of its potential returns per unit of risk. Anglo Asian Mining is currently generating about -0.02 per unit of risk. If you would invest 14,200 in Griffin Mining on October 12, 2024 and sell it today you would earn a total of 250.00 from holding Griffin Mining or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. Anglo Asian Mining
Performance |
| Timeline |
| Griffin Mining |
| Anglo Asian Mining |
Griffin Mining and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Anglo Asian
The main advantage of trading using opposite Griffin Mining and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Griffin Mining vs. Trainline Plc | Griffin Mining vs. Norwegian Air Shuttle | Griffin Mining vs. Bisichi Mining PLC | Griffin Mining vs. First Majestic Silver |
| Anglo Asian vs. Zoom Video Communications | Anglo Asian vs. BW Offshore | Anglo Asian vs. Nordic Semiconductor ASA | Anglo Asian vs. Darden Restaurants |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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