Correlation Between GRIFFIN MINING and Lakeland Industries
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Lakeland Industries 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 Lakeland Industries 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 Lakeland Industries, you can compare the effects of market volatilities on GRIFFIN MINING and Lakeland Industries 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 Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Lakeland Industries.
Diversification Opportunities for GRIFFIN MINING and Lakeland Industries
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and Lakeland is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries 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 Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Lakeland Industries go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Lakeland Industries
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 2.78 times less return on investment than Lakeland Industries. But when comparing it to its historical volatility, GRIFFIN MINING LTD is 1.49 times less risky than Lakeland Industries. It trades about 0.04 of its potential returns per unit of risk. Lakeland Industries is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,160 in Lakeland Industries on October 13, 2024 and sell it today you would earn a total of 80.00 from holding Lakeland Industries or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Lakeland Industries
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Lakeland Industries |
GRIFFIN MINING and Lakeland Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Lakeland Industries
The main advantage of trading using opposite GRIFFIN MINING and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Lakeland Industries 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 Lakeland Industries will offset losses from the drop in Lakeland Industries' long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Lakeland Industries vs. GRIFFIN MINING LTD | Lakeland Industries vs. OURGAME INTHOLDL 00005 | Lakeland Industries vs. BRAGG GAMING GRP | Lakeland Industries vs. Calibre Mining Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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