Correlation Between GRIFFIN MINING and Eni SpA
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Eni SpA 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 Eni SpA 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 Eni SpA, you can compare the effects of market volatilities on GRIFFIN MINING and Eni SpA 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 Eni SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Eni SpA.
Diversification Opportunities for GRIFFIN MINING and Eni SpA
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRIFFIN and Eni is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Eni SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eni SpA 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 Eni SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eni SpA has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Eni SpA go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Eni SpA
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.41 times more return on investment than Eni SpA. However, GRIFFIN MINING is 1.41 times more volatile than Eni SpA. It trades about 0.04 of its potential returns per unit of risk. Eni SpA is currently generating about -0.09 per unit of risk. If you would invest 173.00 in GRIFFIN MINING LTD on September 13, 2024 and sell it today you would earn a total of 2.00 from holding GRIFFIN MINING LTD or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Eni SpA
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Eni SpA |
GRIFFIN MINING and Eni SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Eni SpA
The main advantage of trading using opposite GRIFFIN MINING and Eni SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Eni SpA 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 Eni SpA will offset losses from the drop in Eni SpA's long position.| GRIFFIN MINING vs. WILLIS LEASE FIN | GRIFFIN MINING vs. Plastic Omnium | GRIFFIN MINING vs. Heidelberg Materials AG | GRIFFIN MINING vs. United Rentals |
| Eni SpA vs. PKSHA TECHNOLOGY INC | Eni SpA vs. Vastned Retail NV | Eni SpA vs. FANDIFI TECHNOLOGY P | Eni SpA vs. BJs Wholesale Club |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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