Correlation Between GRIFFIN MINING and PT Solusi
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and PT Solusi 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 PT Solusi 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 PT Solusi Bangun, you can compare the effects of market volatilities on GRIFFIN MINING and PT Solusi 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 PT Solusi. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and PT Solusi.
Diversification Opportunities for GRIFFIN MINING and PT Solusi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GRIFFIN and RU6 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and PT Solusi Bangun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Solusi Bangun 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 PT Solusi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Solusi Bangun has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and PT Solusi go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and PT Solusi
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.82 times more return on investment than PT Solusi. However, GRIFFIN MINING LTD is 1.22 times less risky than PT Solusi. It trades about -0.04 of its potential returns per unit of risk. PT Solusi Bangun is currently generating about -0.07 per unit of risk. If you would invest 174.00 in GRIFFIN MINING LTD on August 29, 2024 and sell it today you would lose (4.00) from holding GRIFFIN MINING LTD or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. PT Solusi Bangun
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| PT Solusi Bangun |
GRIFFIN MINING and PT Solusi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and PT Solusi
The main advantage of trading using opposite GRIFFIN MINING and PT Solusi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, PT Solusi 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 PT Solusi will offset losses from the drop in PT Solusi's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| PT Solusi vs. VIVA WINE GROUP | PT Solusi vs. SAFETY MEDICAL PROD | PT Solusi vs. Chiba Bank | PT Solusi vs. SOFTBANK P ADR |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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