Correlation Between Griffin Mining and Zegona Communications
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Zegona Communications 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 Zegona Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Zegona Communications Plc, you can compare the effects of market volatilities on Griffin Mining and Zegona Communications 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 Zegona Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Zegona Communications.
Diversification Opportunities for Griffin Mining and Zegona Communications
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Griffin and Zegona is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Zegona Communications Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zegona Communications 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 Zegona Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zegona Communications Plc has no effect on the direction of Griffin Mining i.e., Griffin Mining and Zegona Communications go up and down completely randomly.
Pair Corralation between Griffin Mining and Zegona Communications
Assuming the 90 days trading horizon Griffin Mining is expected to generate 11.79 times less return on investment than Zegona Communications. But when comparing it to its historical volatility, Griffin Mining is 2.02 times less risky than Zegona Communications. It trades about 0.05 of its potential returns per unit of risk. Zegona Communications Plc is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 32,400 in Zegona Communications Plc on October 12, 2024 and sell it today you would earn a total of 9,200 from holding Zegona Communications Plc or generate 28.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffin Mining vs. Zegona Communications Plc
Performance |
| Timeline |
| Griffin Mining |
| Zegona Communications Plc |
Griffin Mining and Zegona Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffin Mining and Zegona Communications
The main advantage of trading using opposite Griffin Mining and Zegona Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Zegona Communications 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 Zegona Communications will offset losses from the drop in Zegona Communications' 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 |
| Zegona Communications vs. Deltex Medical Group | Zegona Communications vs. Batm Advanced Communications | Zegona Communications vs. Auto Trader Group | Zegona Communications vs. Gamma Communications PLC |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |