Correlation Between GRIFFIN MINING and EHEALTH
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and EHEALTH 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 EHEALTH 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 EHEALTH, you can compare the effects of market volatilities on GRIFFIN MINING and EHEALTH 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 EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and EHEALTH.
Diversification Opportunities for GRIFFIN MINING and EHEALTH
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and EHEALTH is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH 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 EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and EHEALTH go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and EHEALTH
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.47 times more return on investment than EHEALTH. However, GRIFFIN MINING LTD is 2.14 times less risky than EHEALTH. It trades about 0.13 of its potential returns per unit of risk. EHEALTH is currently generating about -0.01 per unit of risk. If you would invest 94.00 in GRIFFIN MINING LTD on September 4, 2024 and sell it today you would earn a total of 77.00 from holding GRIFFIN MINING LTD or generate 81.91% 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. EHEALTH
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| EHEALTH |
GRIFFIN MINING and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and EHEALTH
The main advantage of trading using opposite GRIFFIN MINING and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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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