Correlation Between GRIFFIN MINING and T MOBILE
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and T MOBILE 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 T MOBILE 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 T MOBILE US, you can compare the effects of market volatilities on GRIFFIN MINING and T MOBILE 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 T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and T MOBILE.
Diversification Opportunities for GRIFFIN MINING and T MOBILE
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRIFFIN and TM5 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and T MOBILE US in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE US 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 T MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE US has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and T MOBILE go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and T MOBILE
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 7.0 times less return on investment than T MOBILE. In addition to that, GRIFFIN MINING is 1.52 times more volatile than T MOBILE US. It trades about 0.03 of its total potential returns per unit of risk. T MOBILE US is currently generating about 0.29 per unit of volatility. If you would invest 18,046 in T MOBILE US on September 3, 2024 and sell it today you would earn a total of 5,444 from holding T MOBILE US or generate 30.17% 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. T MOBILE US
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| T MOBILE US |
GRIFFIN MINING and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and T MOBILE
The main advantage of trading using opposite GRIFFIN MINING and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, T MOBILE 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 T MOBILE will offset losses from the drop in T MOBILE's long position.| GRIFFIN MINING vs. Cardinal Health | GRIFFIN MINING vs. ALERION CLEANPOWER | GRIFFIN MINING vs. Clean Energy Fuels | GRIFFIN MINING vs. FEMALE HEALTH |
| T MOBILE vs. GRIFFIN MINING LTD | T MOBILE vs. Brockhaus Capital Management | T MOBILE vs. Waste Management | T MOBILE vs. Cardinal Health |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |