Correlation Between GRIFFIN MINING and Sumitomo Chemical
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Sumitomo Chemical 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 Sumitomo Chemical 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 Sumitomo Chemical, you can compare the effects of market volatilities on GRIFFIN MINING and Sumitomo Chemical 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 Sumitomo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Sumitomo Chemical.
Diversification Opportunities for GRIFFIN MINING and Sumitomo Chemical
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRIFFIN and Sumitomo is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Sumitomo Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Chemical 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 Sumitomo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Chemical has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Sumitomo Chemical go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Sumitomo Chemical
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.82 times more return on investment than Sumitomo Chemical. However, GRIFFIN MINING LTD is 1.21 times less risky than Sumitomo Chemical. It trades about 0.1 of its potential returns per unit of risk. Sumitomo Chemical is currently generating about -0.01 per unit of risk. If you would invest 82.00 in GRIFFIN MINING LTD on December 13, 2024 and sell it today you would earn a total of 140.00 from holding GRIFFIN MINING LTD or generate 170.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Sumitomo Chemical
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Sumitomo Chemical |
GRIFFIN MINING and Sumitomo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Sumitomo Chemical
The main advantage of trading using opposite GRIFFIN MINING and Sumitomo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Sumitomo Chemical 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 Sumitomo Chemical will offset losses from the drop in Sumitomo Chemical's long position.| GRIFFIN MINING vs. Apple Inc | ||
| GRIFFIN MINING vs. Apple Inc | ||
| GRIFFIN MINING vs. Apple Inc | ||
| GRIFFIN MINING vs. Apple Inc |
| Sumitomo Chemical vs. JAPAN TOBACCO UNSPADR12 | ||
| Sumitomo Chemical vs. British American Tobacco | ||
| Sumitomo Chemical vs. Perseus Mining Limited | ||
| Sumitomo Chemical vs. GRIFFIN MINING LTD |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |