Correlation Between GRIFFIN MINING and Wayside Technology
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Wayside Technology 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 Wayside Technology 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 Wayside Technology Group, you can compare the effects of market volatilities on GRIFFIN MINING and Wayside Technology 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 Wayside Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Wayside Technology.
Diversification Opportunities for GRIFFIN MINING and Wayside Technology
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRIFFIN and Wayside is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Wayside Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayside Technology 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 Wayside Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayside Technology has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Wayside Technology go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Wayside Technology
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.41 times more return on investment than Wayside Technology. However, GRIFFIN MINING LTD is 2.43 times less risky than Wayside Technology. It trades about 0.06 of its potential returns per unit of risk. Wayside Technology Group is currently generating about -0.16 per unit of risk. If you would invest 214.00 in GRIFFIN MINING LTD on December 16, 2024 and sell it today you would earn a total of 4.00 from holding GRIFFIN MINING LTD or generate 1.87% 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. Wayside Technology Group
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Wayside Technology |
GRIFFIN MINING and Wayside Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Wayside Technology
The main advantage of trading using opposite GRIFFIN MINING and Wayside Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Wayside Technology 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 Wayside Technology will offset losses from the drop in Wayside Technology's long position.| GRIFFIN MINING vs. NTG Nordic Transport | ||
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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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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