Correlation Between GRIFFIN MINING and Kaiser Aluminum
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Kaiser Aluminum 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 Kaiser Aluminum 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 Kaiser Aluminum, you can compare the effects of market volatilities on GRIFFIN MINING and Kaiser Aluminum 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 Kaiser Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Kaiser Aluminum.
Diversification Opportunities for GRIFFIN MINING and Kaiser Aluminum
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRIFFIN and Kaiser is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Kaiser Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Aluminum 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 Kaiser Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Aluminum has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Kaiser Aluminum go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Kaiser Aluminum
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.77 times more return on investment than Kaiser Aluminum. However, GRIFFIN MINING LTD is 1.29 times less risky than Kaiser Aluminum. It trades about 0.1 of its potential returns per unit of risk. Kaiser Aluminum is currently generating about 0.02 per unit of risk. If you would invest 90.00 in GRIFFIN MINING LTD on September 30, 2024 and sell it today you would earn a total of 81.00 from holding GRIFFIN MINING LTD or generate 90.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Kaiser Aluminum
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Kaiser Aluminum |
GRIFFIN MINING and Kaiser Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Kaiser Aluminum
The main advantage of trading using opposite GRIFFIN MINING and Kaiser Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Kaiser Aluminum 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 Kaiser Aluminum will offset losses from the drop in Kaiser Aluminum's long position.| GRIFFIN MINING vs. The Boston Beer | GRIFFIN MINING vs. THAI BEVERAGE | GRIFFIN MINING vs. ECHO INVESTMENT ZY | GRIFFIN MINING vs. IMPERIAL TOBACCO |
| Kaiser Aluminum vs. Norsk Hydro ASA | Kaiser Aluminum vs. Norsk Hydro ASA | Kaiser Aluminum vs. AMAG Austria Metall | Kaiser Aluminum vs. Century Aluminum |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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