Correlation Between GRIFFIN MINING and Costco Wholesale
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Costco Wholesale 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 Costco Wholesale 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 Costco Wholesale, you can compare the effects of market volatilities on GRIFFIN MINING and Costco Wholesale 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 Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Costco Wholesale.
Diversification Opportunities for GRIFFIN MINING and Costco Wholesale
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and Costco is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Costco Wholesale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale 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 Costco Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costco Wholesale has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Costco Wholesale go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Costco Wholesale
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.53 times more return on investment than Costco Wholesale. However, GRIFFIN MINING is 1.53 times more volatile than Costco Wholesale. It trades about 0.11 of its potential returns per unit of risk. Costco Wholesale is currently generating about 0.16 per unit of risk. If you would invest 97.00 in GRIFFIN MINING LTD on September 1, 2024 and sell it today you would earn a total of 75.00 from holding GRIFFIN MINING LTD or generate 77.32% 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. Costco Wholesale
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Costco Wholesale |
GRIFFIN MINING and Costco Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Costco Wholesale
The main advantage of trading using opposite GRIFFIN MINING and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Costco Wholesale 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 Costco Wholesale will offset losses from the drop in Costco Wholesale's long position.| GRIFFIN MINING vs. Microbot Medical | GRIFFIN MINING vs. VIRGIN WINES UK | GRIFFIN MINING vs. Japan Medical Dynamic | GRIFFIN MINING vs. JAPAN TOBACCO UNSPADR12 |
| Costco Wholesale vs. Applied Materials | Costco Wholesale vs. RETAIL FOOD GROUP | Costco Wholesale vs. Salesforce | Costco Wholesale vs. SIDETRADE EO 1 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |