Correlation Between GRIFFIN MINING and CANON MARKETING
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and CANON MARKETING 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 CANON MARKETING 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 CANON MARKETING JP, you can compare the effects of market volatilities on GRIFFIN MINING and CANON MARKETING 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 CANON MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and CANON MARKETING.
Diversification Opportunities for GRIFFIN MINING and CANON MARKETING
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and CANON is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and CANON MARKETING JP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANON MARKETING JP 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 CANON MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CANON MARKETING JP has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and CANON MARKETING go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and CANON MARKETING
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the CANON MARKETING. In addition to that, GRIFFIN MINING is 1.86 times more volatile than CANON MARKETING JP. It trades about -0.09 of its total potential returns per unit of risk. CANON MARKETING JP is currently generating about -0.13 per unit of volatility. If you would invest 3,080 in CANON MARKETING JP on October 17, 2024 and sell it today you would lose (100.00) from holding CANON MARKETING JP or give up 3.25% 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. CANON MARKETING JP
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| CANON MARKETING JP |
GRIFFIN MINING and CANON MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and CANON MARKETING
The main advantage of trading using opposite GRIFFIN MINING and CANON MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, CANON MARKETING 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 CANON MARKETING will offset losses from the drop in CANON MARKETING'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 |
| CANON MARKETING vs. Carnegie Clean Energy | CANON MARKETING vs. Harmony Gold Mining | CANON MARKETING vs. FIREWEED METALS P | CANON MARKETING vs. Playa Hotels Resorts |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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