Correlation Between GRIFFIN MINING and NEXON
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and NEXON 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 NEXON 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 NEXON Co, you can compare the effects of market volatilities on GRIFFIN MINING and NEXON 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 NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and NEXON.
Diversification Opportunities for GRIFFIN MINING and NEXON
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and NEXON is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON 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 NEXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and NEXON go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and NEXON
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 1.85 times less return on investment than NEXON. But when comparing it to its historical volatility, GRIFFIN MINING LTD is 2.36 times less risky than NEXON. It trades about 0.08 of its potential returns per unit of risk. NEXON Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 440.00 in NEXON Co on August 29, 2024 and sell it today you would earn a total of 850.00 from holding NEXON Co or generate 193.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. NEXON Co
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| NEXON |
GRIFFIN MINING and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and NEXON
The main advantage of trading using opposite GRIFFIN MINING and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, NEXON 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 NEXON will offset losses from the drop in NEXON's long position.| GRIFFIN MINING vs. BW OFFSHORE LTD | GRIFFIN MINING vs. Eidesvik Offshore ASA | GRIFFIN MINING vs. Liberty Broadband | GRIFFIN MINING vs. Sekisui Chemical Co |
| NEXON vs. STORE ELECTRONIC | NEXON vs. METHODE ELECTRONICS | NEXON vs. UET United Electronic | NEXON vs. Nucletron Electronic Aktiengesellschaft |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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