Correlation Between GRIFFIN MINING and Wacker Neuson
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Wacker Neuson 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 Wacker Neuson 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 Wacker Neuson SE, you can compare the effects of market volatilities on GRIFFIN MINING and Wacker Neuson 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 Wacker Neuson. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Wacker Neuson.
Diversification Opportunities for GRIFFIN MINING and Wacker Neuson
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRIFFIN and Wacker is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Wacker Neuson SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wacker Neuson SE 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 Wacker Neuson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wacker Neuson SE has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Wacker Neuson go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Wacker Neuson
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.24 times more return on investment than Wacker Neuson. However, GRIFFIN MINING is 1.24 times more volatile than Wacker Neuson SE. It trades about 0.1 of its potential returns per unit of risk. Wacker Neuson SE is currently generating about 0.01 per unit of risk. If you would invest 82.00 in GRIFFIN MINING LTD on November 28, 2024 and sell it today you would earn a total of 134.00 from holding GRIFFIN MINING LTD or generate 163.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Wacker Neuson SE
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Wacker Neuson SE |
GRIFFIN MINING and Wacker Neuson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Wacker Neuson
The main advantage of trading using opposite GRIFFIN MINING and Wacker Neuson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Wacker Neuson 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 Wacker Neuson will offset losses from the drop in Wacker Neuson's long position.| GRIFFIN MINING vs. Lamar Advertising | GRIFFIN MINING vs. Cars Inc | GRIFFIN MINING vs. SINGAPORE AIRLINES | GRIFFIN MINING vs. Southwest Airlines Co |
| Wacker Neuson vs. Diamyd Medical AB | Wacker Neuson vs. Universal Entertainment | Wacker Neuson vs. CVR Medical Corp | Wacker Neuson vs. PROSIEBENSAT1 MEDIADR4 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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