Correlation Between GRIFFIN MINING and New Residential
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and New Residential 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 New Residential 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 New Residential Investment, you can compare the effects of market volatilities on GRIFFIN MINING and New Residential 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 New Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and New Residential.
Diversification Opportunities for GRIFFIN MINING and New Residential
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and New is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and New Residential Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Residential Inve 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 New Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Residential Inve has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and New Residential go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and New Residential
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.72 times more return on investment than New Residential. However, GRIFFIN MINING is 1.72 times more volatile than New Residential Investment. It trades about 0.08 of its potential returns per unit of risk. New Residential Investment is currently generating about 0.07 per unit of risk. If you would invest 80.00 in GRIFFIN MINING LTD on August 31, 2024 and sell it today you would earn a total of 90.00 from holding GRIFFIN MINING LTD or generate 112.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. New Residential Investment
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| New Residential Inve |
GRIFFIN MINING and New Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and New Residential
The main advantage of trading using opposite GRIFFIN MINING and New Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, New Residential 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 New Residential will offset losses from the drop in New Residential's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| New Residential vs. MGIC INVESTMENT | New Residential vs. Perseus Mining Limited | New Residential vs. GRIFFIN MINING LTD | New Residential vs. ECHO INVESTMENT ZY |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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