Correlation Between GRIFFIN MINING and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and XLMedia PLC 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 XLMedia PLC 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 XLMedia PLC, you can compare the effects of market volatilities on GRIFFIN MINING and XLMedia PLC 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and XLMedia PLC.
Diversification Opportunities for GRIFFIN MINING and XLMedia PLC
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRIFFIN and XLMedia is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and XLMedia PLC go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and XLMedia PLC
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.14 times more return on investment than XLMedia PLC. However, GRIFFIN MINING LTD is 6.91 times less risky than XLMedia PLC. It trades about 0.16 of its potential returns per unit of risk. XLMedia PLC is currently generating about -0.11 per unit of risk. If you would invest 165.00 in GRIFFIN MINING LTD on September 22, 2024 and sell it today you would earn a total of 8.00 from holding GRIFFIN MINING LTD or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. XLMedia PLC
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| XLMedia PLC |
GRIFFIN MINING and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and XLMedia PLC
The main advantage of trading using opposite GRIFFIN MINING and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| GRIFFIN MINING vs. AUSNUTRIA DAIRY | GRIFFIN MINING vs. JD SPORTS FASH | GRIFFIN MINING vs. SENECA FOODS A | GRIFFIN MINING vs. BG Foods |
| XLMedia PLC vs. GRIFFIN MINING LTD | XLMedia PLC vs. MCEWEN MINING INC | XLMedia PLC vs. Jacquet Metal Service | XLMedia PLC vs. Zijin Mining Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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