Correlation Between GRIFFIN MINING and Playa Hotels
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Playa Hotels 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 Playa Hotels 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 Playa Hotels Resorts, you can compare the effects of market volatilities on GRIFFIN MINING and Playa Hotels 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 Playa Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Playa Hotels.
Diversification Opportunities for GRIFFIN MINING and Playa Hotels
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRIFFIN and Playa is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Playa Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playa Hotels Resorts 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 Playa Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playa Hotels Resorts has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Playa Hotels go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Playa Hotels
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.12 times more return on investment than Playa Hotels. However, GRIFFIN MINING is 1.12 times more volatile than Playa Hotels Resorts. It trades about 0.08 of its potential returns per unit of risk. Playa Hotels Resorts is currently generating about 0.06 per unit of risk. If you would invest 82.00 in GRIFFIN MINING LTD on September 24, 2024 and sell it today you would earn a total of 92.00 from holding GRIFFIN MINING LTD or generate 112.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Playa Hotels Resorts
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Playa Hotels Resorts |
GRIFFIN MINING and Playa Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Playa Hotels
The main advantage of trading using opposite GRIFFIN MINING and Playa Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Playa Hotels 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 Playa Hotels will offset losses from the drop in Playa Hotels' long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Playa Hotels vs. GRIFFIN MINING LTD | Playa Hotels vs. Data3 Limited | Playa Hotels vs. INFORMATION SVC GRP | Playa Hotels vs. LION ONE METALS |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |