Correlation Between GRIFFIN MINING and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Grand Canyon 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 Grand Canyon 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 Grand Canyon Education, you can compare the effects of market volatilities on GRIFFIN MINING and Grand Canyon 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 Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Grand Canyon.
Diversification Opportunities for GRIFFIN MINING and Grand Canyon
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRIFFIN and Grand is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education 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 Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Grand Canyon go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Grand Canyon
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the Grand Canyon. In addition to that, GRIFFIN MINING is 1.76 times more volatile than Grand Canyon Education. It trades about -0.03 of its total potential returns per unit of risk. Grand Canyon Education is currently generating about 0.18 per unit of volatility. If you would invest 15,700 in Grand Canyon Education on October 18, 2024 and sell it today you would earn a total of 700.00 from holding Grand Canyon Education or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Grand Canyon Education
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Grand Canyon Education |
GRIFFIN MINING and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Grand Canyon
The main advantage of trading using opposite GRIFFIN MINING and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon's long position.| GRIFFIN MINING vs. Caseys General Stores | GRIFFIN MINING vs. Thai Beverage Public | GRIFFIN MINING vs. Tencent Music Entertainment | GRIFFIN MINING vs. BJs Wholesale Club |
| Grand Canyon vs. Zijin Mining Group | Grand Canyon vs. BROADWIND ENRGY | Grand Canyon vs. GRIFFIN MINING LTD | Grand Canyon vs. MAGNUM MINING EXP |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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