Correlation Between GRIFFIN MINING and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and VARIOUS EATERIES 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 VARIOUS EATERIES 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 VARIOUS EATERIES LS, you can compare the effects of market volatilities on GRIFFIN MINING and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and VARIOUS EATERIES.
Diversification Opportunities for GRIFFIN MINING and VARIOUS EATERIES
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and VARIOUS is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and VARIOUS EATERIES
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.93 times more return on investment than VARIOUS EATERIES. However, GRIFFIN MINING LTD is 1.08 times less risky than VARIOUS EATERIES. It trades about 0.06 of its potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about -0.04 per unit of risk. If you would invest 97.00 in GRIFFIN MINING LTD on October 27, 2024 and sell it today you would earn a total of 75.00 from holding GRIFFIN MINING LTD or generate 77.32% 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. VARIOUS EATERIES LS
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| VARIOUS EATERIES |
GRIFFIN MINING and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and VARIOUS EATERIES
The main advantage of trading using opposite GRIFFIN MINING and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| GRIFFIN MINING vs. CLOVER HEALTH INV | GRIFFIN MINING vs. Planet Fitness | GRIFFIN MINING vs. Universal Health Realty | GRIFFIN MINING vs. Marie Brizard Wine |
| VARIOUS EATERIES vs. Western Copper and | VARIOUS EATERIES vs. STRAYER EDUCATION | VARIOUS EATERIES vs. Coeur Mining | VARIOUS EATERIES vs. Harmony Gold Mining |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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