Correlation Between GRIFFIN MINING and Pick N
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Pick N 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 Pick N 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 Pick n Pay, you can compare the effects of market volatilities on GRIFFIN MINING and Pick N 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 Pick N. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Pick N.
Diversification Opportunities for GRIFFIN MINING and Pick N
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and Pick is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Pick n Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pick n Pay 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 Pick N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pick n Pay has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Pick N go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Pick N
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 6.3 times less return on investment than Pick N. But when comparing it to its historical volatility, GRIFFIN MINING LTD is 13.47 times less risky than Pick N. It trades about 0.08 of its potential returns per unit of risk. Pick n Pay is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 330.00 in Pick n Pay on September 2, 2024 and sell it today you would lose (175.00) from holding Pick n Pay or give up 53.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Pick n Pay
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Pick n Pay |
GRIFFIN MINING and Pick N Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Pick N
The main advantage of trading using opposite GRIFFIN MINING and Pick N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Pick N 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 Pick N will offset losses from the drop in Pick N's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Pick N vs. Taiwan Semiconductor Manufacturing | Pick N vs. AUSTEVOLL SEAFOOD | Pick N vs. Tower Semiconductor | Pick N vs. CN MODERN DAIRY |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |