Correlation Between GRIFFIN MINING and Charter Communications
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Charter Communications 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 Charter Communications 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 Charter Communications, you can compare the effects of market volatilities on GRIFFIN MINING and Charter Communications 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 Charter Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Charter Communications.
Diversification Opportunities for GRIFFIN MINING and Charter Communications
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRIFFIN and Charter is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Charter Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Communications 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 Charter Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Communications has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Charter Communications go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Charter Communications
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 2.38 times more return on investment than Charter Communications. However, GRIFFIN MINING is 2.38 times more volatile than Charter Communications. It trades about 0.07 of its potential returns per unit of risk. Charter Communications is currently generating about 0.02 per unit of risk. If you would invest 174.00 in GRIFFIN MINING LTD on October 21, 2024 and sell it today you would earn a total of 6.00 from holding GRIFFIN MINING LTD or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Charter Communications
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Charter Communications |
GRIFFIN MINING and Charter Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Charter Communications
The main advantage of trading using opposite GRIFFIN MINING and Charter Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Charter Communications 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 Charter Communications will offset losses from the drop in Charter Communications' long position.| GRIFFIN MINING vs. MPH Health Care | GRIFFIN MINING vs. CODERE ONLINE LUX | GRIFFIN MINING vs. Lamar Advertising | GRIFFIN MINING vs. Cardinal Health |
| Charter Communications vs. Direct Line Insurance | Charter Communications vs. OPKO HEALTH | Charter Communications vs. PURETECH HEALTH PLC | Charter Communications vs. Webster Financial |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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