Correlation Between GRIFFIN MINING and TMX GROUP
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and TMX GROUP 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 TMX GROUP 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 TMX GROUP LTD, you can compare the effects of market volatilities on GRIFFIN MINING and TMX GROUP 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 TMX GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and TMX GROUP.
Diversification Opportunities for GRIFFIN MINING and TMX GROUP
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRIFFIN and TMX is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and TMX GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMX GROUP LTD 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 TMX GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMX GROUP LTD has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and TMX GROUP go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and TMX GROUP
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.66 times more return on investment than TMX GROUP. However, GRIFFIN MINING LTD is 1.52 times less risky than TMX GROUP. It trades about -0.01 of its potential returns per unit of risk. TMX GROUP LTD is currently generating about -0.06 per unit of risk. If you would invest 173.00 in GRIFFIN MINING LTD on September 13, 2024 and sell it today you would lose (1.00) from holding GRIFFIN MINING LTD or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. TMX GROUP LTD
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| TMX GROUP LTD |
GRIFFIN MINING and TMX GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and TMX GROUP
The main advantage of trading using opposite GRIFFIN MINING and TMX GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, TMX GROUP 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 TMX GROUP will offset losses from the drop in TMX GROUP's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| TMX GROUP vs. CME Group | TMX GROUP vs. Intercontinental Exchange | TMX GROUP vs. Hong Kong Exchanges | TMX GROUP vs. London Stock Exchange |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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