Correlation Between GRIFFIN MINING and GigaMedia
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and GigaMedia 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 GigaMedia 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 GigaMedia, you can compare the effects of market volatilities on GRIFFIN MINING and GigaMedia 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 GigaMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and GigaMedia.
Diversification Opportunities for GRIFFIN MINING and GigaMedia
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and GigaMedia is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and GigaMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaMedia 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 GigaMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaMedia has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and GigaMedia go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and GigaMedia
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the GigaMedia. In addition to that, GRIFFIN MINING is 1.03 times more volatile than GigaMedia. It trades about -0.08 of its total potential returns per unit of risk. GigaMedia is currently generating about 0.05 per unit of volatility. If you would invest 140.00 in GigaMedia on November 5, 2024 and sell it today you would earn a total of 3.00 from holding GigaMedia or generate 2.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GRIFFIN MINING LTD vs. GigaMedia
Performance |
Timeline |
GRIFFIN MINING LTD |
GigaMedia |
GRIFFIN MINING and GigaMedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRIFFIN MINING and GigaMedia
The main advantage of trading using opposite GRIFFIN MINING and GigaMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, GigaMedia 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 GigaMedia will offset losses from the drop in GigaMedia's long position.GRIFFIN MINING vs. SIVERS SEMICONDUCTORS AB | GRIFFIN MINING vs. NorAm Drilling AS | GRIFFIN MINING vs. Volkswagen AG | GRIFFIN MINING vs. Darden Restaurants |
GigaMedia vs. UPDATE SOFTWARE | GigaMedia vs. Delta Electronics Public | GigaMedia vs. MAGIC SOFTWARE ENTR | GigaMedia 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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