Correlation Between GRIFFIN MINING and HANSOH PHARMAC
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and HANSOH PHARMAC 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 HANSOH PHARMAC 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 HANSOH PHARMAC HD 00001, you can compare the effects of market volatilities on GRIFFIN MINING and HANSOH PHARMAC 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 HANSOH PHARMAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and HANSOH PHARMAC.
Diversification Opportunities for GRIFFIN MINING and HANSOH PHARMAC
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GRIFFIN and HANSOH is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and HANSOH PHARMAC HD 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANSOH PHARMAC HD 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 HANSOH PHARMAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANSOH PHARMAC HD has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and HANSOH PHARMAC go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and HANSOH PHARMAC
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the HANSOH PHARMAC. In addition to that, GRIFFIN MINING is 1.33 times more volatile than HANSOH PHARMAC HD 00001. It trades about -0.08 of its total potential returns per unit of risk. HANSOH PHARMAC HD 00001 is currently generating about 0.22 per unit of volatility. If you would invest 202.00 in HANSOH PHARMAC HD 00001 on November 7, 2024 and sell it today you would earn a total of 22.00 from holding HANSOH PHARMAC HD 00001 or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. HANSOH PHARMAC HD 00001
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| HANSOH PHARMAC HD |
GRIFFIN MINING and HANSOH PHARMAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and HANSOH PHARMAC
The main advantage of trading using opposite GRIFFIN MINING and HANSOH PHARMAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, HANSOH PHARMAC 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 HANSOH PHARMAC will offset losses from the drop in HANSOH PHARMAC's long position.| GRIFFIN MINING vs. SIVERS SEMICONDUCTORS AB | GRIFFIN MINING vs. NorAm Drilling AS | GRIFFIN MINING vs. Volkswagen AG | GRIFFIN MINING vs. Darden Restaurants |
| HANSOH PHARMAC vs. Chunghwa Telecom Co | HANSOH PHARMAC vs. PLAYTIKA HOLDING DL 01 | HANSOH PHARMAC vs. PLAYMATES TOYS | HANSOH PHARMAC vs. ARISTOCRAT LEISURE |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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