Correlation Between GRIFFIN MINING and TFS FINANCIAL
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and TFS FINANCIAL 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 TFS FINANCIAL 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 TFS FINANCIAL, you can compare the effects of market volatilities on GRIFFIN MINING and TFS FINANCIAL 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 TFS FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and TFS FINANCIAL.
Diversification Opportunities for GRIFFIN MINING and TFS FINANCIAL
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and TFS is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and TFS FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFS FINANCIAL 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 TFS FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TFS FINANCIAL has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and TFS FINANCIAL go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and TFS FINANCIAL
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.3 times more return on investment than TFS FINANCIAL. However, GRIFFIN MINING is 1.3 times more volatile than TFS FINANCIAL. It trades about 0.07 of its potential returns per unit of risk. TFS FINANCIAL is currently generating about 0.03 per unit of risk. If you would invest 100.00 in GRIFFIN MINING LTD on September 1, 2024 and sell it today you would earn a total of 72.00 from holding GRIFFIN MINING LTD or generate 72.0% 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. TFS FINANCIAL
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| TFS FINANCIAL |
GRIFFIN MINING and TFS FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and TFS FINANCIAL
The main advantage of trading using opposite GRIFFIN MINING and TFS FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, TFS FINANCIAL 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 TFS FINANCIAL will offset losses from the drop in TFS FINANCIAL'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 |
| TFS FINANCIAL vs. Infrastrutture Wireless Italiane | TFS FINANCIAL vs. Sumitomo Chemical | TFS FINANCIAL vs. Sekisui Chemical Co | TFS FINANCIAL vs. 24SEVENOFFICE GROUP AB |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |