Correlation Between GRIFFIN MINING and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and BW OFFSHORE 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 BW OFFSHORE 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 BW OFFSHORE LTD, you can compare the effects of market volatilities on GRIFFIN MINING and BW OFFSHORE 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 BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and BW OFFSHORE.
Diversification Opportunities for GRIFFIN MINING and BW OFFSHORE
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRIFFIN and XY81 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD 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 BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and BW OFFSHORE go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and BW OFFSHORE
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the BW OFFSHORE. In addition to that, GRIFFIN MINING is 1.15 times more volatile than BW OFFSHORE LTD. It trades about -0.09 of its total potential returns per unit of risk. BW OFFSHORE LTD is currently generating about 0.33 per unit of volatility. If you would invest 230.00 in BW OFFSHORE LTD on October 17, 2024 and sell it today you would earn a total of 32.00 from holding BW OFFSHORE LTD or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. BW OFFSHORE LTD
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| BW OFFSHORE LTD |
GRIFFIN MINING and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and BW OFFSHORE
The main advantage of trading using opposite GRIFFIN MINING and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, BW OFFSHORE 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| GRIFFIN MINING vs. Caseys General Stores | GRIFFIN MINING vs. Thai Beverage Public | GRIFFIN MINING vs. Tencent Music Entertainment | GRIFFIN MINING vs. BJs Wholesale Club |
| BW OFFSHORE vs. BANKINTER ADR 2007 | BW OFFSHORE vs. Perdoceo Education | BW OFFSHORE vs. CeoTronics AG | BW OFFSHORE vs. UNIQA INSURANCE GR |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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