Correlation Between GRIFFIN MINING and CAIRN HOMES
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and CAIRN 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 CAIRN 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 CAIRN HOMES EO, you can compare the effects of market volatilities on GRIFFIN MINING and CAIRN 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 CAIRN HOMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and CAIRN HOMES.
Diversification Opportunities for GRIFFIN MINING and CAIRN HOMES
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and CAIRN is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and CAIRN HOMES EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAIRN HOMES EO 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 CAIRN HOMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAIRN HOMES EO has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and CAIRN HOMES go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and CAIRN HOMES
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the CAIRN HOMES. But the stock apears to be less risky and, when comparing its historical volatility, GRIFFIN MINING LTD is 1.22 times less risky than CAIRN HOMES. The stock trades about -0.09 of its potential returns per unit of risk. The CAIRN HOMES EO is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 229.00 in CAIRN HOMES EO on October 17, 2024 and sell it today you would lose (10.00) from holding CAIRN HOMES EO or give up 4.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. CAIRN HOMES EO
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| CAIRN HOMES EO |
GRIFFIN MINING and CAIRN HOMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and CAIRN HOMES
The main advantage of trading using opposite GRIFFIN MINING and CAIRN HOMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, CAIRN 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 CAIRN HOMES will offset losses from the drop in CAIRN HOMES's long position.| GRIFFIN MINING vs. Caseys General Stores | GRIFFIN MINING vs. Thai Beverage Public | GRIFFIN MINING vs. Tencent Music Entertainment | GRIFFIN MINING vs. BJs Wholesale Club |
| CAIRN HOMES vs. Jupiter Fund Management | CAIRN HOMES vs. GRIFFIN MINING LTD | CAIRN HOMES vs. GALENA MINING LTD | CAIRN HOMES vs. De Grey Mining |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |