Correlation Between GRIFFIN MINING and KCAP FINANCIAL
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and KCAP FINANCIAL 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 KCAP FINANCIAL 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 KCAP FINANCIAL, you can compare the effects of market volatilities on GRIFFIN MINING and KCAP FINANCIAL 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 KCAP FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and KCAP FINANCIAL.
Diversification Opportunities for GRIFFIN MINING and KCAP FINANCIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GRIFFIN and KCAP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and KCAP FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCAP FINANCIAL 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 KCAP FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCAP FINANCIAL has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and KCAP FINANCIAL go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and KCAP FINANCIAL
If you would invest 168.00 in GRIFFIN MINING LTD on September 2, 2024 and sell it today you would earn a total of 3.00 from holding GRIFFIN MINING LTD or generate 1.79% 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. KCAP FINANCIAL
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| KCAP FINANCIAL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GRIFFIN MINING and KCAP FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and KCAP FINANCIAL
The main advantage of trading using opposite GRIFFIN MINING and KCAP FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, KCAP FINANCIAL 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 KCAP FINANCIAL will offset losses from the drop in KCAP FINANCIAL's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| KCAP FINANCIAL vs. Data3 Limited | KCAP FINANCIAL vs. DICKER DATA LTD | KCAP FINANCIAL vs. Public Storage | KCAP FINANCIAL vs. Science Applications International |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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