Correlation Between GRIFFIN MINING and Science Applications
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Science Applications 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 Science Applications 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 Science Applications International, you can compare the effects of market volatilities on GRIFFIN MINING and Science Applications 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 Science Applications. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Science Applications.
Diversification Opportunities for GRIFFIN MINING and Science Applications
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GRIFFIN and Science is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Science Applications Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science Applications 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 Science Applications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Applications has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Science Applications go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Science Applications
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.24 times more return on investment than Science Applications. However, GRIFFIN MINING is 1.24 times more volatile than Science Applications International. It trades about 0.07 of its potential returns per unit of risk. Science Applications International is currently generating about 0.03 per unit of risk. If you would invest 93.00 in GRIFFIN MINING LTD on October 15, 2024 and sell it today you would earn a total of 75.00 from holding GRIFFIN MINING LTD or generate 80.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Science Applications Internati
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Science Applications |
GRIFFIN MINING and Science Applications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Science Applications
The main advantage of trading using opposite GRIFFIN MINING and Science Applications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Science Applications 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 Science Applications will offset losses from the drop in Science Applications' long position.| GRIFFIN MINING vs. INTERSHOP Communications Aktiengesellschaft | GRIFFIN MINING vs. Iridium Communications | GRIFFIN MINING vs. Cairo Communication SpA | GRIFFIN MINING vs. Harmony Gold Mining |
| Science Applications vs. Sch Environnement SA | Science Applications vs. Kingdee International Software | Science Applications vs. Tianjin Capital Environmental | Science Applications vs. ANGANG STEEL H |
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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