Correlation Between GRIFFIN MINING and Tradeweb Markets
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Tradeweb Markets 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 Tradeweb Markets 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 Tradeweb Markets, you can compare the effects of market volatilities on GRIFFIN MINING and Tradeweb Markets 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 Tradeweb Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Tradeweb Markets.
Diversification Opportunities for GRIFFIN MINING and Tradeweb Markets
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and Tradeweb is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Tradeweb Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradeweb Markets 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 Tradeweb Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradeweb Markets has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Tradeweb Markets go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Tradeweb Markets
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the Tradeweb Markets. In addition to that, GRIFFIN MINING is 1.63 times more volatile than Tradeweb Markets. It trades about -0.09 of its total potential returns per unit of risk. Tradeweb Markets is currently generating about 0.09 per unit of volatility. If you would invest 12,500 in Tradeweb Markets on October 17, 2024 and sell it today you would earn a total of 300.00 from holding Tradeweb Markets or generate 2.4% 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. Tradeweb Markets
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Tradeweb Markets |
GRIFFIN MINING and Tradeweb Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Tradeweb Markets
The main advantage of trading using opposite GRIFFIN MINING and Tradeweb Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Tradeweb Markets 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 Tradeweb Markets will offset losses from the drop in Tradeweb Markets' long position.| GRIFFIN MINING vs. Caseys General Stores | GRIFFIN MINING vs. Thai Beverage Public | GRIFFIN MINING vs. Tencent Music Entertainment | GRIFFIN MINING vs. BJs Wholesale Club |
| Tradeweb Markets vs. De Grey Mining | Tradeweb Markets vs. SERI INDUSTRIAL EO | Tradeweb Markets vs. Minerals Technologies | Tradeweb Markets vs. GREENX METALS LTD |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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