Correlation Between GRIFFIN MINING and GUDANG GARAM
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and GUDANG GARAM 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 GUDANG GARAM 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 GUDANG GARAM, you can compare the effects of market volatilities on GRIFFIN MINING and GUDANG GARAM 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 GUDANG GARAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and GUDANG GARAM.
Diversification Opportunities for GRIFFIN MINING and GUDANG GARAM
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRIFFIN and GUDANG is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and GUDANG GARAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUDANG GARAM 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 GUDANG GARAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUDANG GARAM has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and GUDANG GARAM go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and GUDANG GARAM
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.97 times more return on investment than GUDANG GARAM. However, GRIFFIN MINING LTD is 1.03 times less risky than GUDANG GARAM. It trades about 0.1 of its potential returns per unit of risk. GUDANG GARAM is currently generating about -0.07 per unit of risk. If you would invest 97.00 in GRIFFIN MINING LTD on September 12, 2024 and sell it today you would earn a total of 79.00 from holding GRIFFIN MINING LTD or generate 81.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. GUDANG GARAM
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| GUDANG GARAM |
GRIFFIN MINING and GUDANG GARAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and GUDANG GARAM
The main advantage of trading using opposite GRIFFIN MINING and GUDANG GARAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, GUDANG GARAM 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 GUDANG GARAM will offset losses from the drop in GUDANG GARAM's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| GUDANG GARAM vs. GRIFFIN MINING LTD | GUDANG GARAM vs. Richardson Electronics | GUDANG GARAM vs. GALENA MINING LTD | GUDANG GARAM vs. Renesas Electronics |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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