Correlation Between Griffin Mining and Fonix Mobile
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Fonix Mobile 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 Fonix Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Fonix Mobile plc, you can compare the effects of market volatilities on Griffin Mining and Fonix Mobile 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 Fonix Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Fonix Mobile.
Diversification Opportunities for Griffin Mining and Fonix Mobile
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Griffin and Fonix is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Fonix Mobile plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonix Mobile plc 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 Fonix Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonix Mobile plc has no effect on the direction of Griffin Mining i.e., Griffin Mining and Fonix Mobile go up and down completely randomly.
Pair Corralation between Griffin Mining and Fonix Mobile
Assuming the 90 days trading horizon Griffin Mining is expected to generate 4.15 times less return on investment than Fonix Mobile. But when comparing it to its historical volatility, Griffin Mining is 1.41 times less risky than Fonix Mobile. It trades about 0.05 of its potential returns per unit of risk. Fonix Mobile plc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 19,650 in Fonix Mobile plc on October 12, 2024 and sell it today you would earn a total of 1,750 from holding Fonix Mobile plc or generate 8.91% 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. Fonix Mobile plc
Performance |
| Timeline |
| Griffin Mining |
| Fonix Mobile plc |
Griffin Mining and Fonix Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Fonix Mobile
The main advantage of trading using opposite Griffin Mining and Fonix Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Fonix Mobile 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 Fonix Mobile will offset losses from the drop in Fonix Mobile'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 |
| Fonix Mobile vs. United Airlines Holdings | Fonix Mobile vs. Cembra Money Bank | Fonix Mobile vs. Zurich Insurance Group | Fonix Mobile vs. Nordea Bank Abp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |