Correlation Between GRIFFIN MINING and Philip Morris
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Philip Morris 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 Philip Morris 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 Philip Morris International, you can compare the effects of market volatilities on GRIFFIN MINING and Philip Morris 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 Philip Morris. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Philip Morris.
Diversification Opportunities for GRIFFIN MINING and Philip Morris
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and Philip is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Philip Morris International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philip Morris Intern 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 Philip Morris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philip Morris Intern has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Philip Morris go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Philip Morris
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the Philip Morris. In addition to that, GRIFFIN MINING is 1.37 times more volatile than Philip Morris International. It trades about -0.04 of its total potential returns per unit of risk. Philip Morris International is currently generating about 0.13 per unit of volatility. If you would invest 12,036 in Philip Morris International on August 28, 2024 and sell it today you would earn a total of 478.00 from holding Philip Morris International or generate 3.97% 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. Philip Morris International
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Philip Morris Intern |
GRIFFIN MINING and Philip Morris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Philip Morris
The main advantage of trading using opposite GRIFFIN MINING and Philip Morris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Philip Morris 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 Philip Morris will offset losses from the drop in Philip Morris' long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Philip Morris vs. GRIFFIN MINING LTD | Philip Morris vs. GALENA MINING LTD | Philip Morris vs. MINCO SILVER | Philip Morris vs. Virtus Investment Partners |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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