Correlation Between GRIFFIN MINING and INSURANCE AUST
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and INSURANCE AUST 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 INSURANCE AUST 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 INSURANCE AUST GRP, you can compare the effects of market volatilities on GRIFFIN MINING and INSURANCE AUST 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 INSURANCE AUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and INSURANCE AUST.
Diversification Opportunities for GRIFFIN MINING and INSURANCE AUST
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and INSURANCE is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP 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 INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and INSURANCE AUST go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and INSURANCE AUST
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the INSURANCE AUST. But the stock apears to be less risky and, when comparing its historical volatility, GRIFFIN MINING LTD is 1.01 times less risky than INSURANCE AUST. The stock trades about -0.02 of its potential returns per unit of risk. The INSURANCE AUST GRP is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 444.00 in INSURANCE AUST GRP on September 1, 2024 and sell it today you would earn a total of 71.00 from holding INSURANCE AUST GRP or generate 15.99% 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. INSURANCE AUST GRP
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| INSURANCE AUST GRP |
GRIFFIN MINING and INSURANCE AUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and INSURANCE AUST
The main advantage of trading using opposite GRIFFIN MINING and INSURANCE AUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, INSURANCE AUST 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 INSURANCE AUST will offset losses from the drop in INSURANCE AUST's long position.| GRIFFIN MINING vs. Microbot Medical | GRIFFIN MINING vs. VIRGIN WINES UK | GRIFFIN MINING vs. Japan Medical Dynamic | GRIFFIN MINING vs. JAPAN TOBACCO UNSPADR12 |
| INSURANCE AUST vs. SIVERS SEMICONDUCTORS AB | INSURANCE AUST vs. Darden Restaurants | INSURANCE AUST vs. Reliance Steel Aluminum | INSURANCE AUST vs. Q2M Managementberatung AG |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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