Correlation Between GRIFFIN MINING and Astellas Pharma
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Astellas Pharma 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 Astellas Pharma 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 Astellas Pharma, you can compare the effects of market volatilities on GRIFFIN MINING and Astellas Pharma 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 Astellas Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Astellas Pharma.
Diversification Opportunities for GRIFFIN MINING and Astellas Pharma
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and Astellas is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Astellas Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astellas Pharma 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 Astellas Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astellas Pharma has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Astellas Pharma go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Astellas Pharma
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.43 times more return on investment than Astellas Pharma. However, GRIFFIN MINING is 1.43 times more volatile than Astellas Pharma. It trades about 0.45 of its potential returns per unit of risk. Astellas Pharma is currently generating about -0.03 per unit of risk. If you would invest 168.00 in GRIFFIN MINING LTD on December 1, 2024 and sell it today you would earn a total of 52.00 from holding GRIFFIN MINING LTD or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Astellas Pharma
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Astellas Pharma |
GRIFFIN MINING and Astellas Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Astellas Pharma
The main advantage of trading using opposite GRIFFIN MINING and Astellas Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Astellas Pharma 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 Astellas Pharma will offset losses from the drop in Astellas Pharma's long position.| GRIFFIN MINING vs. HUTCHISON TELECOMM | GRIFFIN MINING vs. TRAVEL LEISURE DL 01 | GRIFFIN MINING vs. SBA Communications Corp | GRIFFIN MINING vs. Spirent Communications plc |
| Astellas Pharma vs. Johnson Johnson | Astellas Pharma vs. Merck Co | Astellas Pharma vs. Roche Holding Ltd | Astellas Pharma vs. Amgen Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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