Correlation Between GRIFFIN MINING and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Suntory Beverage 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 Suntory Beverage 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 Suntory Beverage Food, you can compare the effects of market volatilities on GRIFFIN MINING and Suntory Beverage 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 Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Suntory Beverage.
Diversification Opportunities for GRIFFIN MINING and Suntory Beverage
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRIFFIN and Suntory is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food 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 Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Suntory Beverage go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Suntory Beverage
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 10.22 times less return on investment than Suntory Beverage. In addition to that, GRIFFIN MINING is 1.06 times more volatile than Suntory Beverage Food. It trades about 0.01 of its total potential returns per unit of risk. Suntory Beverage Food is currently generating about 0.07 per unit of volatility. If you would invest 2,984 in Suntory Beverage Food on September 15, 2024 and sell it today you would earn a total of 60.00 from holding Suntory Beverage Food or generate 2.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Suntory Beverage Food
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Suntory Beverage Food |
GRIFFIN MINING and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Suntory Beverage
The main advantage of trading using opposite GRIFFIN MINING and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Suntory Beverage vs. Superior Plus Corp | Suntory Beverage vs. SIVERS SEMICONDUCTORS AB | Suntory Beverage vs. NorAm Drilling AS | Suntory Beverage vs. Norsk Hydro ASA |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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