Correlation Between GRIFFIN MINING and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and DICKER DATA 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 DICKER DATA 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 DICKER DATA LTD, you can compare the effects of market volatilities on GRIFFIN MINING and DICKER DATA 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 DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and DICKER DATA.
Diversification Opportunities for GRIFFIN MINING and DICKER DATA
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRIFFIN and DICKER is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD 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 DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and DICKER DATA go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and DICKER DATA
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.93 times more return on investment than DICKER DATA. However, GRIFFIN MINING LTD is 1.07 times less risky than DICKER DATA. It trades about 0.08 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about 0.0 per unit of risk. If you would invest 80.00 in GRIFFIN MINING LTD on September 3, 2024 and sell it today you would earn a total of 91.00 from holding GRIFFIN MINING LTD or generate 113.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. DICKER DATA LTD
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| DICKER DATA LTD |
GRIFFIN MINING and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and DICKER DATA
The main advantage of trading using opposite GRIFFIN MINING and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA's long position.| GRIFFIN MINING vs. Cardinal Health | GRIFFIN MINING vs. ALERION CLEANPOWER | GRIFFIN MINING vs. Clean Energy Fuels | GRIFFIN MINING vs. FEMALE HEALTH |
| DICKER DATA vs. Arrow Electronics | DICKER DATA vs. KAGA EL LTD | DICKER DATA vs. Wayside Technology Group | DICKER DATA vs. INNELEC MULTIMMINHEO153 |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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