Correlation Between GRIFFIN MINING and LTC Properties
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and LTC Properties 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 LTC Properties 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 LTC Properties, you can compare the effects of market volatilities on GRIFFIN MINING and LTC Properties 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 LTC Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and LTC Properties.
Diversification Opportunities for GRIFFIN MINING and LTC Properties
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRIFFIN and LTC is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and LTC Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LTC Properties 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 LTC Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LTC Properties has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and LTC Properties go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and LTC Properties
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.61 times more return on investment than LTC Properties. However, GRIFFIN MINING is 1.61 times more volatile than LTC Properties. It trades about 0.13 of its potential returns per unit of risk. LTC Properties is currently generating about 0.08 per unit of risk. If you would invest 95.00 in GRIFFIN MINING LTD on September 14, 2024 and sell it today you would earn a total of 77.00 from holding GRIFFIN MINING LTD or generate 81.05% 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. LTC Properties
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| LTC Properties |
GRIFFIN MINING and LTC Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and LTC Properties
The main advantage of trading using opposite GRIFFIN MINING and LTC Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, LTC Properties 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 LTC Properties will offset losses from the drop in LTC Properties' long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| LTC Properties vs. Sims Metal Management | LTC Properties vs. GRIFFIN MINING LTD | LTC Properties vs. GALENA MINING LTD | LTC Properties vs. Corporate Travel Management |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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