Correlation Between GRIFFIN MINING and Plexus Corp
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Plexus Corp 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 Plexus Corp 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 Plexus Corp, you can compare the effects of market volatilities on GRIFFIN MINING and Plexus Corp 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 Plexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Plexus Corp.
Diversification Opportunities for GRIFFIN MINING and Plexus Corp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and Plexus is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Plexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plexus Corp 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 Plexus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plexus Corp has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Plexus Corp go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Plexus Corp
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.79 times more return on investment than Plexus Corp. However, GRIFFIN MINING LTD is 1.27 times less risky than Plexus Corp. It trades about 0.12 of its potential returns per unit of risk. Plexus Corp is currently generating about -0.01 per unit of risk. If you would invest 170.00 in GRIFFIN MINING LTD on September 12, 2024 and sell it today you would earn a total of 6.00 from holding GRIFFIN MINING LTD or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Plexus Corp
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Plexus Corp |
GRIFFIN MINING and Plexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Plexus Corp
The main advantage of trading using opposite GRIFFIN MINING and Plexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Plexus Corp 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 Plexus Corp will offset losses from the drop in Plexus Corp's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Meiko Electronics Co | Plexus Corp vs. Superior Plus Corp | Plexus Corp vs. SIVERS SEMICONDUCTORS 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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