Correlation Between GRIFFIN MINING and SCANDMEDICAL SOLDK-040
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on GRIFFIN MINING and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and SCANDMEDICAL SOLDK-040.
Diversification Opportunities for GRIFFIN MINING and SCANDMEDICAL SOLDK-040
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and SCANDMEDICAL is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and SCANDMEDICAL SOLDK-040 go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and SCANDMEDICAL SOLDK-040
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 1.15 times less return on investment than SCANDMEDICAL SOLDK-040. But when comparing it to its historical volatility, GRIFFIN MINING LTD is 3.64 times less risky than SCANDMEDICAL SOLDK-040. It trades about 0.08 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 100.00 in SCANDMEDICAL SOLDK 040 on October 11, 2024 and sell it today you would lose (28.00) from holding SCANDMEDICAL SOLDK 040 or give up 28.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. SCANDMEDICAL SOLDK 040
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| SCANDMEDICAL SOLDK 040 |
GRIFFIN MINING and SCANDMEDICAL SOLDK-040 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and SCANDMEDICAL SOLDK-040
The main advantage of trading using opposite GRIFFIN MINING and SCANDMEDICAL SOLDK-040 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 will offset losses from the drop in SCANDMEDICAL SOLDK-040's long position.| GRIFFIN MINING vs. INTERSHOP Communications Aktiengesellschaft | GRIFFIN MINING vs. Globex Mining Enterprises | GRIFFIN MINING vs. Geely Automobile Holdings | GRIFFIN MINING vs. Yanzhou Coal Mining |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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