Correlation Between GRIFFIN MINING and Air Products
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Air Products 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 Air Products 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 Air Products and, you can compare the effects of market volatilities on GRIFFIN MINING and Air Products 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 Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Air Products.
Diversification Opportunities for GRIFFIN MINING and Air Products
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and Air is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products 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 Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Air Products go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Air Products
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the Air Products. But the stock apears to be less risky and, when comparing its historical volatility, GRIFFIN MINING LTD is 1.02 times less risky than Air Products. The stock trades about -0.02 of its potential returns per unit of risk. The Air Products and is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 28,250 in Air Products and on September 1, 2024 and sell it today you would earn a total of 3,280 from holding Air Products and or generate 11.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Air Products and
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Air Products |
GRIFFIN MINING and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Air Products
The main advantage of trading using opposite GRIFFIN MINING and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.| GRIFFIN MINING vs. Microbot Medical | GRIFFIN MINING vs. VIRGIN WINES UK | GRIFFIN MINING vs. Japan Medical Dynamic | GRIFFIN MINING vs. JAPAN TOBACCO UNSPADR12 |
| Air Products vs. MINCO SILVER | Air Products vs. NorAm Drilling AS | Air Products vs. GRIFFIN MINING LTD | Air Products vs. International Consolidated Airlines |
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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