Correlation Between Griffin Mining and IShares Physical
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and IShares Physical 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 IShares Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and iShares Physical Silver, you can compare the effects of market volatilities on Griffin Mining and IShares Physical 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 IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and IShares Physical.
Diversification Opportunities for Griffin Mining and IShares Physical
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Griffin and IShares is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and iShares Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Silver 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 IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Silver has no effect on the direction of Griffin Mining i.e., Griffin Mining and IShares Physical go up and down completely randomly.
Pair Corralation between Griffin Mining and IShares Physical
Assuming the 90 days trading horizon Griffin Mining is expected to generate 1.73 times less return on investment than IShares Physical. In addition to that, Griffin Mining is 1.29 times more volatile than iShares Physical Silver. It trades about 0.01 of its total potential returns per unit of risk. iShares Physical Silver is currently generating about 0.03 per unit of volatility. If you would invest 2,805 in iShares Physical Silver on September 5, 2024 and sell it today you would earn a total of 150.00 from holding iShares Physical Silver or generate 5.35% 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. iShares Physical Silver
Performance |
| Timeline |
| Griffin Mining |
| iShares Physical Silver |
Griffin Mining and IShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and IShares Physical
The main advantage of trading using opposite Griffin Mining and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, IShares Physical 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 IShares Physical will offset losses from the drop in IShares Physical's long position.| Griffin Mining vs. TR Property Investment | Griffin Mining vs. X FAB Silicon Foundries | Griffin Mining vs. Monks Investment Trust | Griffin Mining vs. Hansa Investment |
| IShares Physical vs. Liberty Media Corp | IShares Physical vs. Zinc Media Group | IShares Physical vs. Ashtead Technology Holdings | IShares Physical vs. Check Point Software |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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