Correlation Between GRIFFIN MINING and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Carnegie Clean 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 Carnegie Clean 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 Carnegie Clean Energy, you can compare the effects of market volatilities on GRIFFIN MINING and Carnegie Clean 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 Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Carnegie Clean.
Diversification Opportunities for GRIFFIN MINING and Carnegie Clean
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and Carnegie is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy 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 Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Carnegie Clean go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Carnegie Clean
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.46 times more return on investment than Carnegie Clean. However, GRIFFIN MINING LTD is 2.18 times less risky than Carnegie Clean. It trades about 0.12 of its potential returns per unit of risk. Carnegie Clean Energy is currently generating about -0.02 per unit of risk. If you would invest 98.00 in GRIFFIN MINING LTD on September 20, 2024 and sell it today you would earn a total of 70.00 from holding GRIFFIN MINING LTD or generate 71.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Carnegie Clean Energy
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Carnegie Clean Energy |
GRIFFIN MINING and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Carnegie Clean
The main advantage of trading using opposite GRIFFIN MINING and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Carnegie Clean vs. GRIFFIN MINING LTD | Carnegie Clean vs. Tyson Foods | Carnegie Clean vs. LION ONE METALS | Carnegie Clean vs. Charoen Pokphand Foods |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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