Correlation Between GRIFFIN MINING and Whirlpool
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Whirlpool 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 Whirlpool 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 Whirlpool, you can compare the effects of market volatilities on GRIFFIN MINING and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Whirlpool.
Diversification Opportunities for GRIFFIN MINING and Whirlpool
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and Whirlpool is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Whirlpool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Whirlpool go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Whirlpool
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.89 times more return on investment than Whirlpool. However, GRIFFIN MINING LTD is 1.13 times less risky than Whirlpool. It trades about 0.13 of its potential returns per unit of risk. Whirlpool is currently generating about 0.04 per unit of risk. If you would invest 96.00 in GRIFFIN MINING LTD on September 17, 2024 and sell it today you would earn a total of 77.00 from holding GRIFFIN MINING LTD or generate 80.21% 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. Whirlpool
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Whirlpool |
GRIFFIN MINING and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Whirlpool
The main advantage of trading using opposite GRIFFIN MINING and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| Whirlpool vs. Selective Insurance Group | Whirlpool vs. GRIFFIN MINING LTD | Whirlpool vs. Perseus Mining Limited | Whirlpool vs. HANOVER INSURANCE |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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