Correlation Between GRIFFIN MINING and Ramsay Générale
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Ramsay Générale 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 Ramsay Générale 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 Ramsay Gnrale de, you can compare the effects of market volatilities on GRIFFIN MINING and Ramsay Générale 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 Ramsay Générale. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Ramsay Générale.
Diversification Opportunities for GRIFFIN MINING and Ramsay Générale
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and Ramsay is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Ramsay Gnrale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Gnrale de 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 Ramsay Générale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Gnrale de has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Ramsay Générale go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Ramsay Générale
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.11 times more return on investment than Ramsay Générale. However, GRIFFIN MINING is 1.11 times more volatile than Ramsay Gnrale de. It trades about 0.03 of its potential returns per unit of risk. Ramsay Gnrale de is currently generating about -0.21 per unit of risk. If you would invest 167.00 in GRIFFIN MINING LTD on September 2, 2024 and sell it today you would earn a total of 4.00 from holding GRIFFIN MINING LTD or generate 2.4% 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. Ramsay Gnrale de
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Ramsay Gnrale de |
GRIFFIN MINING and Ramsay Générale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Ramsay Générale
The main advantage of trading using opposite GRIFFIN MINING and Ramsay Générale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Ramsay Générale 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 Ramsay Générale will offset losses from the drop in Ramsay Générale's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Ramsay Générale vs. Ramsay Health Care | Ramsay Générale vs. Zijin Mining Group | Ramsay Générale vs. Bumrungrad Hospital Public | Ramsay Générale vs. Sabra Health Care |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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