Correlation Between GRIFFIN MINING and Trimble
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Trimble 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 Trimble 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 Trimble, you can compare the effects of market volatilities on GRIFFIN MINING and Trimble 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 Trimble. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Trimble.
Diversification Opportunities for GRIFFIN MINING and Trimble
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and Trimble is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Trimble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimble 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 Trimble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimble has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Trimble go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Trimble
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.21 times more return on investment than Trimble. However, GRIFFIN MINING is 1.21 times more volatile than Trimble. It trades about 0.08 of its potential returns per unit of risk. Trimble is currently generating about 0.05 per unit of risk. If you would invest 83.00 in GRIFFIN MINING LTD on September 14, 2024 and sell it today you would earn a total of 89.00 from holding GRIFFIN MINING LTD or generate 107.23% 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. Trimble
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Trimble |
GRIFFIN MINING and Trimble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Trimble
The main advantage of trading using opposite GRIFFIN MINING and Trimble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Trimble 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 Trimble will offset losses from the drop in Trimble's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Trimble vs. AXWAY SOFTWARE EO | Trimble vs. Guidewire Software | Trimble vs. ATOSS SOFTWARE | Trimble vs. AUTO TRADER 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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