Correlation Between GRIFFIN MINING and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and GOLD ROAD 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 GOLD ROAD 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 GOLD ROAD RES, you can compare the effects of market volatilities on GRIFFIN MINING and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and GOLD ROAD.
Diversification Opportunities for GRIFFIN MINING and GOLD ROAD
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRIFFIN and GOLD is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and GOLD ROAD go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and GOLD ROAD
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.03 times more return on investment than GOLD ROAD. However, GRIFFIN MINING is 1.03 times more volatile than GOLD ROAD RES. It trades about 0.3 of its potential returns per unit of risk. GOLD ROAD RES is currently generating about -0.11 per unit of risk. If you would invest 197.00 in GRIFFIN MINING LTD on December 8, 2024 and sell it today you would earn a total of 27.00 from holding GRIFFIN MINING LTD or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. GOLD ROAD RES
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| GOLD ROAD RES |
GRIFFIN MINING and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and GOLD ROAD
The main advantage of trading using opposite GRIFFIN MINING and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| GRIFFIN MINING vs. Molina Healthcare | ||
| GRIFFIN MINING vs. Sumitomo Chemical | ||
| GRIFFIN MINING vs. Planet Fitness | ||
| GRIFFIN MINING vs. EPSILON HEALTHCARE LTD |
| GOLD ROAD vs. MOVIE GAMES SA | ||
| GOLD ROAD vs. Ultra Clean Holdings | ||
| GOLD ROAD vs. JAPAN TOBACCO UNSPADR12 | ||
| GOLD ROAD vs. PENN NATL GAMING |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |