Correlation Between GRIFFIN MINING and YAOKO CO
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and YAOKO CO 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 YAOKO CO 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 YAOKO LTD, you can compare the effects of market volatilities on GRIFFIN MINING and YAOKO CO 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 YAOKO CO. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and YAOKO CO.
Diversification Opportunities for GRIFFIN MINING and YAOKO CO
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GRIFFIN and YAOKO is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and YAOKO LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YAOKO LTD 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 YAOKO CO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YAOKO LTD has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and YAOKO CO go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and YAOKO CO
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 2.55 times more return on investment than YAOKO CO. However, GRIFFIN MINING is 2.55 times more volatile than YAOKO LTD. It trades about 0.45 of its potential returns per unit of risk. YAOKO LTD is currently generating about 0.18 per unit of risk. If you would invest 168.00 in GRIFFIN MINING LTD on December 1, 2024 and sell it today you would earn a total of 52.00 from holding GRIFFIN MINING LTD or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. YAOKO LTD
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| YAOKO LTD |
GRIFFIN MINING and YAOKO CO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and YAOKO CO
The main advantage of trading using opposite GRIFFIN MINING and YAOKO CO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, YAOKO CO 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 YAOKO CO will offset losses from the drop in YAOKO CO's long position.| GRIFFIN MINING vs. HUTCHISON TELECOMM | GRIFFIN MINING vs. TRAVEL LEISURE DL 01 | GRIFFIN MINING vs. SBA Communications Corp | GRIFFIN MINING vs. Spirent Communications plc |
| YAOKO CO vs. Fevertree Drinks PLC | YAOKO CO vs. Ping An Insurance | YAOKO CO vs. American Eagle Outfitters | YAOKO CO vs. BG Foods |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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