Correlation Between GRIFFIN MINING and Coor Service
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Coor Service 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 Coor Service 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 Coor Service Management, you can compare the effects of market volatilities on GRIFFIN MINING and Coor Service 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 Coor Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Coor Service.
Diversification Opportunities for GRIFFIN MINING and Coor Service
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRIFFIN and Coor is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Coor Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coor Service Management 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 Coor Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coor Service Management has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Coor Service go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Coor Service
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.06 times more return on investment than Coor Service. However, GRIFFIN MINING is 1.06 times more volatile than Coor Service Management. It trades about -0.05 of its potential returns per unit of risk. Coor Service Management is currently generating about -0.25 per unit of risk. If you would invest 174.00 in GRIFFIN MINING LTD on August 28, 2024 and sell it today you would lose (4.00) from holding GRIFFIN MINING LTD or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Coor Service Management
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Coor Service Management |
GRIFFIN MINING and Coor Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Coor Service
The main advantage of trading using opposite GRIFFIN MINING and Coor Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Coor Service 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 Coor Service will offset losses from the drop in Coor Service's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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