Correlation Between GRIFFIN MINING and Markel
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Markel 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 Markel 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 Markel, you can compare the effects of market volatilities on GRIFFIN MINING and Markel 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 Markel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Markel.
Diversification Opportunities for GRIFFIN MINING and Markel
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and Markel is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Markel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel 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 Markel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Markel go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Markel
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.43 times more return on investment than Markel. However, GRIFFIN MINING is 1.43 times more volatile than Markel. It trades about 0.07 of its potential returns per unit of risk. Markel is currently generating about 0.05 per unit of risk. If you would invest 86.00 in GRIFFIN MINING LTD on September 4, 2024 and sell it today you would earn a total of 85.00 from holding GRIFFIN MINING LTD or generate 98.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Markel
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Markel |
GRIFFIN MINING and Markel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Markel
The main advantage of trading using opposite GRIFFIN MINING and Markel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Markel 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 Markel will offset losses from the drop in Markel's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Markel vs. Chuangs China Investments | Markel vs. Xinhua Winshare Publishing | Markel vs. EEDUCATION ALBERT AB | Markel vs. CapitaLand Investment Limited |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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