Correlation Between GRIFFIN MINING and TELE2 AB
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and TELE2 AB 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 TELE2 AB 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 TELE2 AB UNSPADR12, you can compare the effects of market volatilities on GRIFFIN MINING and TELE2 AB 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 TELE2 AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and TELE2 AB.
Diversification Opportunities for GRIFFIN MINING and TELE2 AB
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and TELE2 is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and TELE2 AB UNSPADR12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELE2 AB UNSPADR12 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 TELE2 AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELE2 AB UNSPADR12 has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and TELE2 AB go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and TELE2 AB
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the TELE2 AB. But the stock apears to be less risky and, when comparing its historical volatility, GRIFFIN MINING LTD is 1.2 times less risky than TELE2 AB. The stock trades about -0.1 of its potential returns per unit of risk. The TELE2 AB UNSPADR12 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 475.00 in TELE2 AB UNSPADR12 on September 3, 2024 and sell it today you would earn a total of 11.00 from holding TELE2 AB UNSPADR12 or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. TELE2 AB UNSPADR12
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| TELE2 AB UNSPADR12 |
GRIFFIN MINING and TELE2 AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and TELE2 AB
The main advantage of trading using opposite GRIFFIN MINING and TELE2 AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, TELE2 AB 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 TELE2 AB will offset losses from the drop in TELE2 AB's long position.| GRIFFIN MINING vs. Cardinal Health | GRIFFIN MINING vs. ALERION CLEANPOWER | GRIFFIN MINING vs. Clean Energy Fuels | GRIFFIN MINING vs. FEMALE HEALTH |
| TELE2 AB vs. Spirent Communications plc | TELE2 AB vs. Entravision Communications | TELE2 AB vs. MAROC TELECOM | TELE2 AB vs. WillScot Mobile Mini |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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