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
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Griffin and Alternative is 0.05. 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 generate 1.79 times more return on investment than Alternative Liquidity. However, Griffin Mining is 1.79 times more volatile than Alternative Liquidity. It trades about -0.12 of its potential returns per unit of risk. Alternative Liquidity is currently generating about -0.21 per unit of risk. If you would invest 15,200 in Griffin Mining on September 13, 2024 and sell it today you would lose (1,000.00) from holding Griffin Mining or give up 6.58% of portfolio value 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. Givaudan SA | Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Atalaya Mining |
| Alternative Liquidity vs. Flow Traders NV | Alternative Liquidity vs. Waste Management | Alternative Liquidity vs. GlobalData PLC | Alternative Liquidity vs. Ion Beam Applications |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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