Correlation Between GRIFFIN MINING and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on GRIFFIN MINING and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Jacquet Metal.
Diversification Opportunities for GRIFFIN MINING and Jacquet Metal
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GRIFFIN and Jacquet is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Jacquet Metal go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Jacquet Metal
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.62 times more return on investment than Jacquet Metal. However, GRIFFIN MINING is 1.62 times more volatile than Jacquet Metal Service. It trades about -0.03 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about -0.13 per unit of risk. If you would invest 175.00 in GRIFFIN MINING LTD on August 24, 2024 and sell it today you would lose (3.00) from holding GRIFFIN MINING LTD or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Jacquet Metal Service
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Jacquet Metal Service |
GRIFFIN MINING and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Jacquet Metal
The main advantage of trading using opposite GRIFFIN MINING and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Nippon Steel | Jacquet Metal vs. NIPPON STEEL SPADR |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |