Correlation Between GRIFFIN MINING and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and COFCO Joycome 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 COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRIFFIN MINING LTD and COFCO Joycome Foods, you can compare the effects of market volatilities on GRIFFIN MINING and COFCO Joycome 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 COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and COFCO Joycome.
Diversification Opportunities for GRIFFIN MINING and COFCO Joycome
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and COFCO is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods 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 LTD are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and COFCO Joycome go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and COFCO Joycome
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.59 times more return on investment than COFCO Joycome. However, GRIFFIN MINING LTD is 1.69 times less risky than COFCO Joycome. It trades about 0.06 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about -0.01 per unit of risk. If you would invest 97.00 in GRIFFIN MINING LTD on October 26, 2024 and sell it today you would earn a total of 75.00 from holding GRIFFIN MINING LTD or generate 77.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. COFCO Joycome Foods
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| COFCO Joycome Foods |
GRIFFIN MINING and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and COFCO Joycome
The main advantage of trading using opposite GRIFFIN MINING and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| GRIFFIN MINING vs. CLOVER HEALTH INV | GRIFFIN MINING vs. Planet Fitness | GRIFFIN MINING vs. Universal Health Realty | GRIFFIN MINING vs. Marie Brizard Wine |
| COFCO Joycome vs. CN DATANG C | COFCO Joycome vs. DATAGROUP SE | COFCO Joycome vs. RYU Apparel | COFCO Joycome vs. SAN MIGUEL BREWERY |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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