Correlation Between GRIFFIN MINING and TAL Education
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and TAL Education 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 TAL Education 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 TAL Education Group, you can compare the effects of market volatilities on GRIFFIN MINING and TAL Education 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 TAL Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and TAL Education.
Diversification Opportunities for GRIFFIN MINING and TAL Education
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GRIFFIN and TAL is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and TAL Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAL Education Group 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 TAL Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAL Education Group has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and TAL Education go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and TAL Education
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.48 times more return on investment than TAL Education. However, GRIFFIN MINING LTD is 2.1 times less risky than TAL Education. It trades about 0.02 of its potential returns per unit of risk. TAL Education Group is currently generating about -0.13 per unit of risk. If you would invest 170.00 in GRIFFIN MINING LTD on September 5, 2024 and sell it today you would earn a total of 1.00 from holding GRIFFIN MINING LTD or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. TAL Education Group
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| TAL Education Group |
GRIFFIN MINING and TAL Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and TAL Education
The main advantage of trading using opposite GRIFFIN MINING and TAL Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, TAL Education 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 TAL Education will offset losses from the drop in TAL Education's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| TAL Education vs. United Rentals | TAL Education vs. MeVis Medical Solutions | TAL Education vs. ONWARD MEDICAL BV | TAL Education vs. UNITED RENTALS |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |