Correlation Between GRIFFIN MINING and NURAN WIRELESS
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and NURAN WIRELESS 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 NURAN WIRELESS 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 NURAN WIRELESS INC, you can compare the effects of market volatilities on GRIFFIN MINING and NURAN WIRELESS 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 NURAN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and NURAN WIRELESS.
Diversification Opportunities for GRIFFIN MINING and NURAN WIRELESS
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and NURAN is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and NURAN WIRELESS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NURAN WIRELESS INC 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 NURAN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NURAN WIRELESS INC has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and NURAN WIRELESS go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and NURAN WIRELESS
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 1.01 times less return on investment than NURAN WIRELESS. But when comparing it to its historical volatility, GRIFFIN MINING LTD is 5.16 times less risky than NURAN WIRELESS. It trades about 0.12 of its potential returns per unit of risk. NURAN WIRELESS INC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8.70 in NURAN WIRELESS INC on September 14, 2024 and sell it today you would lose (4.14) from holding NURAN WIRELESS INC or give up 47.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. NURAN WIRELESS INC
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| NURAN WIRELESS INC |
GRIFFIN MINING and NURAN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and NURAN WIRELESS
The main advantage of trading using opposite GRIFFIN MINING and NURAN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, NURAN WIRELESS 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 NURAN WIRELESS will offset losses from the drop in NURAN WIRELESS's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| NURAN WIRELESS vs. Cisco Systems | NURAN WIRELESS vs. Nokia | NURAN WIRELESS vs. Superior Plus Corp | NURAN WIRELESS vs. SIVERS SEMICONDUCTORS AB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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