Correlation Between GRIFFIN MINING and LANDSEA HOMES
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and LANDSEA HOMES 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 LANDSEA HOMES 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 LANDSEA HOMES P, you can compare the effects of market volatilities on GRIFFIN MINING and LANDSEA HOMES 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 LANDSEA HOMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and LANDSEA HOMES.
Diversification Opportunities for GRIFFIN MINING and LANDSEA HOMES
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and LANDSEA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and LANDSEA HOMES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LANDSEA HOMES P 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 LANDSEA HOMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LANDSEA HOMES P has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and LANDSEA HOMES go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and LANDSEA HOMES
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.66 times more return on investment than LANDSEA HOMES. However, GRIFFIN MINING LTD is 1.52 times less risky than LANDSEA HOMES. It trades about 0.1 of its potential returns per unit of risk. LANDSEA HOMES P is currently generating about 0.02 per unit of risk. If you would invest 85.00 in GRIFFIN MINING LTD on December 4, 2024 and sell it today you would earn a total of 137.00 from holding GRIFFIN MINING LTD or generate 161.18% 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. LANDSEA HOMES P
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| LANDSEA HOMES P |
GRIFFIN MINING and LANDSEA HOMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and LANDSEA HOMES
The main advantage of trading using opposite GRIFFIN MINING and LANDSEA HOMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, LANDSEA HOMES 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 LANDSEA HOMES will offset losses from the drop in LANDSEA HOMES's long position.| GRIFFIN MINING vs. GALENA MINING LTD | GRIFFIN MINING vs. GOLDQUEST MINING | GRIFFIN MINING vs. DISTRICT METALS | GRIFFIN MINING vs. Calibre Mining Corp |
| LANDSEA HOMES vs. Magic Software Enterprises | LANDSEA HOMES vs. Constellation Software | LANDSEA HOMES vs. Alfa Financial Software | LANDSEA HOMES vs. Take Two Interactive Software |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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