Correlation Between GRIFFIN MINING and Clearway Energy
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Clearway Energy 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 Clearway Energy 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 Clearway Energy, you can compare the effects of market volatilities on GRIFFIN MINING and Clearway Energy 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 Clearway Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Clearway Energy.
Diversification Opportunities for GRIFFIN MINING and Clearway Energy
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and Clearway is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Clearway Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearway Energy 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 Clearway Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearway Energy has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Clearway Energy go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Clearway Energy
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.78 times more return on investment than Clearway Energy. However, GRIFFIN MINING is 1.78 times more volatile than Clearway Energy. It trades about 0.04 of its potential returns per unit of risk. Clearway Energy is currently generating about -0.24 per unit of risk. If you would invest 174.00 in GRIFFIN MINING LTD on October 13, 2024 and sell it today you would earn a total of 2.00 from holding GRIFFIN MINING LTD or generate 1.15% 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. Clearway Energy
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Clearway Energy |
GRIFFIN MINING and Clearway Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Clearway Energy
The main advantage of trading using opposite GRIFFIN MINING and Clearway Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Clearway Energy 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 Clearway Energy will offset losses from the drop in Clearway Energy's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Clearway Energy vs. GRIFFIN MINING LTD | Clearway Energy vs. ARDAGH METAL PACDL 0001 | Clearway Energy vs. Forsys Metals Corp | Clearway Energy vs. Kingdee International Software |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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