Correlation Between Griffin Mining and Alternative Liquidity
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Alternative Liquidity 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 Alternative Liquidity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Alternative Liquidity, you can compare the effects of market volatilities on Griffin Mining and Alternative Liquidity 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 Alternative Liquidity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Alternative Liquidity.
Diversification Opportunities for Griffin Mining and Alternative Liquidity
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Griffin and Alternative is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Alternative Liquidity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternative Liquidity 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 Alternative Liquidity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternative Liquidity has no effect on the direction of Griffin Mining i.e., Griffin Mining and Alternative Liquidity go up and down completely randomly.
Pair Corralation between Griffin Mining and Alternative Liquidity
Assuming the 90 days trading horizon Griffin Mining is expected to under-perform the Alternative Liquidity. In addition to that, Griffin Mining is 3.67 times more volatile than Alternative Liquidity. It trades about -0.05 of its total potential returns per unit of risk. Alternative Liquidity is currently generating about 0.22 per unit of volatility. If you would invest 4.70 in Alternative Liquidity on November 2, 2024 and sell it today you would earn a total of 0.15 from holding Alternative Liquidity or generate 3.19% 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. Alternative Liquidity
Performance |
| Timeline |
| Griffin Mining |
| Alternative Liquidity |
Griffin Mining and Alternative Liquidity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Alternative Liquidity
The main advantage of trading using opposite Griffin Mining and Alternative Liquidity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Alternative Liquidity 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 Alternative Liquidity will offset losses from the drop in Alternative Liquidity's long position.| Griffin Mining vs. Check Point Software | Griffin Mining vs. Vietnam Enterprise Investments | Griffin Mining vs. Monks Investment Trust | Griffin Mining vs. Mobius Investment Trust |
| Alternative Liquidity vs. Vienna Insurance Group | Alternative Liquidity vs. China Pacific Insurance | Alternative Liquidity vs. Silvercorp Metals | Alternative Liquidity vs. Adriatic Metals |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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