Correlation Between GRIFFIN MINING and Dairy Farm
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Dairy Farm 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 Dairy Farm 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 Dairy Farm International, you can compare the effects of market volatilities on GRIFFIN MINING and Dairy Farm 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 Dairy Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Dairy Farm.
Diversification Opportunities for GRIFFIN MINING and Dairy Farm
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and Dairy is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Dairy Farm International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dairy Farm International 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 Dairy Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dairy Farm International has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Dairy Farm go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Dairy Farm
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the Dairy Farm. But the stock apears to be less risky and, when comparing its historical volatility, GRIFFIN MINING LTD is 1.34 times less risky than Dairy Farm. The stock trades about -0.01 of its potential returns per unit of risk. The Dairy Farm International is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 167.00 in Dairy Farm International on September 2, 2024 and sell it today you would earn a total of 61.00 from holding Dairy Farm International or generate 36.53% 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. Dairy Farm International
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Dairy Farm International |
GRIFFIN MINING and Dairy Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Dairy Farm
The main advantage of trading using opposite GRIFFIN MINING and Dairy Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Dairy Farm 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 Dairy Farm will offset losses from the drop in Dairy Farm's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Dairy Farm vs. TESCO PLC LS 0633333 | Dairy Farm vs. Superior Plus Corp | Dairy Farm vs. NMI Holdings | Dairy Farm vs. Origin Agritech |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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