Correlation Between GRIFFIN MINING and International Flavors
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and International Flavors 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 International Flavors 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 International Flavors Fragrances, you can compare the effects of market volatilities on GRIFFIN MINING and International Flavors 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 International Flavors. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and International Flavors.
Diversification Opportunities for GRIFFIN MINING and International Flavors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GRIFFIN and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and International Flavors Fragranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Flavors 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 International Flavors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Flavors has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and International Flavors go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and International Flavors
If you would invest 88.00 in GRIFFIN MINING LTD on September 12, 2024 and sell it today you would earn a total of 88.00 from holding GRIFFIN MINING LTD or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. International Flavors Fragranc
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| International Flavors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GRIFFIN MINING and International Flavors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and International Flavors
The main advantage of trading using opposite GRIFFIN MINING and International Flavors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, International Flavors 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 International Flavors will offset losses from the drop in International Flavors' long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| International Flavors vs. SCANSOURCE | International Flavors vs. MELIA HOTELS | International Flavors vs. BOSTON BEER A | International Flavors vs. Summit Hotel Properties |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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