Correlation Between Griffin Mining and Sancus Lending
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Sancus Lending 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 Sancus Lending into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Sancus Lending Group, you can compare the effects of market volatilities on Griffin Mining and Sancus Lending 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 Sancus Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Sancus Lending.
Diversification Opportunities for Griffin Mining and Sancus Lending
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Griffin and Sancus is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Sancus Lending Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sancus Lending Group 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 Sancus Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sancus Lending Group has no effect on the direction of Griffin Mining i.e., Griffin Mining and Sancus Lending go up and down completely randomly.
Pair Corralation between Griffin Mining and Sancus Lending
Assuming the 90 days trading horizon Griffin Mining is expected to generate 840.5 times less return on investment than Sancus Lending. But when comparing it to its historical volatility, Griffin Mining is 6.21 times less risky than Sancus Lending. It trades about 0.0 of its potential returns per unit of risk. Sancus Lending Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Sancus Lending Group on September 3, 2024 and sell it today you would lose (8.00) from holding Sancus Lending Group or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. Sancus Lending Group
Performance |
| Timeline |
| Griffin Mining |
| Sancus Lending Group |
Griffin Mining and Sancus Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Sancus Lending
The main advantage of trading using opposite Griffin Mining and Sancus Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Sancus Lending 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 Sancus Lending will offset losses from the drop in Sancus Lending's long position.| Griffin Mining vs. Givaudan SA | Griffin Mining vs. Atalaya Mining | Griffin Mining vs. Central Asia Metals |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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