Correlation Between GRIFFIN MINING and National Bank
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and National Bank 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 National Bank 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 National Bank Holdings, you can compare the effects of market volatilities on GRIFFIN MINING and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and National Bank.
Diversification Opportunities for GRIFFIN MINING and National Bank
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and National is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and National Bank Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank Holdings 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank Holdings has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and National Bank go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and National Bank
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the National Bank. But the stock apears to be less risky and, when comparing its historical volatility, GRIFFIN MINING LTD is 1.6 times less risky than National Bank. The stock trades about -0.02 of its potential returns per unit of risk. The National Bank Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,020 in National Bank Holdings on August 29, 2024 and sell it today you would earn a total of 600.00 from holding National Bank Holdings or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. National Bank Holdings
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| National Bank Holdings |
GRIFFIN MINING and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and National Bank
The main advantage of trading using opposite GRIFFIN MINING and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| GRIFFIN MINING vs. BW OFFSHORE LTD | GRIFFIN MINING vs. Eidesvik Offshore ASA | GRIFFIN MINING vs. Liberty Broadband | GRIFFIN MINING vs. Sekisui Chemical Co |
| National Bank vs. Austevoll Seafood ASA | National Bank vs. Webster Financial | National Bank vs. CONAGRA FOODS | National Bank vs. Beyond Meat |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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