Correlation Between GRIFFIN MINING and Thyssenkrupp
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Thyssenkrupp 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 Thyssenkrupp 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 thyssenkrupp AG, you can compare the effects of market volatilities on GRIFFIN MINING and Thyssenkrupp 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 Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Thyssenkrupp.
Diversification Opportunities for GRIFFIN MINING and Thyssenkrupp
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and Thyssenkrupp is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and thyssenkrupp AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on thyssenkrupp AG 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 Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of thyssenkrupp AG has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Thyssenkrupp go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Thyssenkrupp
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.68 times more return on investment than Thyssenkrupp. However, GRIFFIN MINING LTD is 1.47 times less risky than Thyssenkrupp. It trades about 0.08 of its potential returns per unit of risk. thyssenkrupp AG is currently generating about 0.0 per unit of risk. If you would invest 82.00 in GRIFFIN MINING LTD on September 21, 2024 and sell it today you would earn a total of 91.00 from holding GRIFFIN MINING LTD or generate 110.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. thyssenkrupp AG
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| thyssenkrupp AG |
GRIFFIN MINING and Thyssenkrupp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Thyssenkrupp
The main advantage of trading using opposite GRIFFIN MINING and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.| GRIFFIN MINING vs. JD SPORTS FASH | GRIFFIN MINING vs. VIAPLAY GROUP AB | GRIFFIN MINING vs. COLUMBIA SPORTSWEAR | GRIFFIN MINING vs. Gaztransport Technigaz SA |
| Thyssenkrupp vs. GRIFFIN MINING LTD | Thyssenkrupp vs. Burlington Stores | Thyssenkrupp vs. Fast Retailing Co | Thyssenkrupp vs. Retail Estates NV |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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