Correlation Between GRIFFIN MINING and SOFTBANK CORP
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and SOFTBANK CORP 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 SOFTBANK CORP 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 SOFTBANK P ADR, you can compare the effects of market volatilities on GRIFFIN MINING and SOFTBANK CORP 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 SOFTBANK CORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and SOFTBANK CORP.
Diversification Opportunities for GRIFFIN MINING and SOFTBANK CORP
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and SOFTBANK is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and SOFTBANK P ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFTBANK P ADR 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 SOFTBANK CORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFTBANK P ADR has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and SOFTBANK CORP go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and SOFTBANK CORP
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the SOFTBANK CORP. But the stock apears to be less risky and, when comparing its historical volatility, GRIFFIN MINING LTD is 2.72 times less risky than SOFTBANK CORP. The stock trades about -0.02 of its potential returns per unit of risk. The SOFTBANK P ADR is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,120 in SOFTBANK P ADR on September 1, 2024 and sell it today you would earn a total of 0.00 from holding SOFTBANK P ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. SOFTBANK P ADR
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| SOFTBANK P ADR |
GRIFFIN MINING and SOFTBANK CORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and SOFTBANK CORP
The main advantage of trading using opposite GRIFFIN MINING and SOFTBANK CORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, SOFTBANK CORP 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 SOFTBANK CORP will offset losses from the drop in SOFTBANK CORP's long position.| GRIFFIN MINING vs. Microbot Medical | GRIFFIN MINING vs. VIRGIN WINES UK | GRIFFIN MINING vs. Japan Medical Dynamic | GRIFFIN MINING vs. JAPAN TOBACCO UNSPADR12 |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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