Correlation Between GRIFFIN MINING and Plastic Omnium
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Plastic Omnium 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 Plastic Omnium 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 Plastic Omnium, you can compare the effects of market volatilities on GRIFFIN MINING and Plastic Omnium 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 Plastic Omnium. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Plastic Omnium.
Diversification Opportunities for GRIFFIN MINING and Plastic Omnium
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GRIFFIN and Plastic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plastic Omnium 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 Plastic Omnium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plastic Omnium has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Plastic Omnium go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Plastic Omnium
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.94 times more return on investment than Plastic Omnium. However, GRIFFIN MINING LTD is 1.06 times less risky than Plastic Omnium. It trades about 0.08 of its potential returns per unit of risk. Plastic Omnium is currently generating about -0.02 per unit of risk. If you would invest 80.00 in GRIFFIN MINING LTD on August 29, 2024 and sell it today you would earn a total of 92.00 from holding GRIFFIN MINING LTD or generate 115.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Plastic Omnium
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Plastic Omnium |
GRIFFIN MINING and Plastic Omnium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Plastic Omnium
The main advantage of trading using opposite GRIFFIN MINING and Plastic Omnium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Plastic Omnium 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 Plastic Omnium will offset losses from the drop in Plastic Omnium's long position.| GRIFFIN MINING vs. BW OFFSHORE LTD | GRIFFIN MINING vs. Eidesvik Offshore ASA | GRIFFIN MINING vs. Liberty Broadband | GRIFFIN MINING vs. Sekisui Chemical Co |
| Plastic Omnium vs. Apple Inc | Plastic Omnium vs. Apple Inc | Plastic Omnium vs. Apple Inc | Plastic Omnium vs. Apple Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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