Correlation Between GRIFFIN MINING and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and SINGAPORE POST 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 SINGAPORE POST 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 SINGAPORE POST, you can compare the effects of market volatilities on GRIFFIN MINING and SINGAPORE POST 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 SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and SINGAPORE POST.
Diversification Opportunities for GRIFFIN MINING and SINGAPORE POST
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and SINGAPORE is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST 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 SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and SINGAPORE POST go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and SINGAPORE POST
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 7.46 times less return on investment than SINGAPORE POST. But when comparing it to its historical volatility, GRIFFIN MINING LTD is 1.11 times less risky than SINGAPORE POST. It trades about 0.04 of its potential returns per unit of risk. SINGAPORE POST is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 37.00 in SINGAPORE POST on September 13, 2024 and sell it today you would earn a total of 4.00 from holding SINGAPORE POST or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. SINGAPORE POST
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| SINGAPORE POST |
GRIFFIN MINING and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and SINGAPORE POST
The main advantage of trading using opposite GRIFFIN MINING and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST's long position.| GRIFFIN MINING vs. WILLIS LEASE FIN | GRIFFIN MINING vs. Plastic Omnium | GRIFFIN MINING vs. Heidelberg Materials AG | GRIFFIN MINING vs. United Rentals |
| SINGAPORE POST vs. Apple Inc | SINGAPORE POST vs. Apple Inc | SINGAPORE POST vs. Apple Inc | SINGAPORE POST vs. Apple Inc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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