Correlation Between GRIFFIN MINING and Retail Estates
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Retail Estates 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 Retail Estates 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 Retail Estates NV, you can compare the effects of market volatilities on GRIFFIN MINING and Retail Estates 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 Retail Estates. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Retail Estates.
Diversification Opportunities for GRIFFIN MINING and Retail Estates
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRIFFIN and Retail is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Retail Estates NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Estates NV 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 Retail Estates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Estates NV has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Retail Estates go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Retail Estates
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.67 times more return on investment than Retail Estates. However, GRIFFIN MINING is 1.67 times more volatile than Retail Estates NV. It trades about -0.04 of its potential returns per unit of risk. Retail Estates NV is currently generating about -0.38 per unit of risk. If you would invest 175.00 in GRIFFIN MINING LTD on August 24, 2024 and sell it today you would lose (3.00) from holding GRIFFIN MINING LTD or give up 1.71% 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. Retail Estates NV
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Retail Estates NV |
GRIFFIN MINING and Retail Estates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Retail Estates
The main advantage of trading using opposite GRIFFIN MINING and Retail Estates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Retail Estates 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 Retail Estates will offset losses from the drop in Retail Estates' long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Retail Estates vs. Simon Property Group | Retail Estates vs. Vicinity Centres | Retail Estates vs. Superior Plus Corp | Retail Estates vs. NMI Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |