Correlation Between GRIFFIN MINING and KEISEI EL
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and KEISEI EL 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 KEISEI EL 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 KEISEI EL RAILWAY, you can compare the effects of market volatilities on GRIFFIN MINING and KEISEI EL 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 KEISEI EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and KEISEI EL.
Diversification Opportunities for GRIFFIN MINING and KEISEI EL
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and KEISEI is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and KEISEI EL RAILWAY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEISEI EL RAILWAY 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 KEISEI EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEISEI EL RAILWAY has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and KEISEI EL go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and KEISEI EL
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.48 times more return on investment than KEISEI EL. However, GRIFFIN MINING is 1.48 times more volatile than KEISEI EL RAILWAY. It trades about 0.04 of its potential returns per unit of risk. KEISEI EL RAILWAY is currently generating about 0.0 per unit of risk. If you would invest 174.00 in GRIFFIN MINING LTD on October 13, 2024 and sell it today you would earn a total of 2.00 from holding GRIFFIN MINING LTD or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. KEISEI EL RAILWAY
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| KEISEI EL RAILWAY |
GRIFFIN MINING and KEISEI EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and KEISEI EL
The main advantage of trading using opposite GRIFFIN MINING and KEISEI EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, KEISEI EL 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 KEISEI EL will offset losses from the drop in KEISEI EL's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| KEISEI EL vs. Jacquet Metal Service | KEISEI EL vs. Iridium Communications | KEISEI EL vs. GRIFFIN MINING LTD | KEISEI EL vs. Harmony Gold Mining |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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