Correlation Between GRIFFIN MINING and INFORMATION SVC
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and INFORMATION SVC 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 INFORMATION SVC 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 INFORMATION SVC GRP, you can compare the effects of market volatilities on GRIFFIN MINING and INFORMATION SVC 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 INFORMATION SVC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and INFORMATION SVC.
Diversification Opportunities for GRIFFIN MINING and INFORMATION SVC
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRIFFIN and INFORMATION is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and INFORMATION SVC GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFORMATION SVC GRP 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 INFORMATION SVC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFORMATION SVC GRP has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and INFORMATION SVC go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and INFORMATION SVC
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 24.67 times less return on investment than INFORMATION SVC. But when comparing it to its historical volatility, GRIFFIN MINING LTD is 1.05 times less risky than INFORMATION SVC. It trades about 0.0 of its potential returns per unit of risk. INFORMATION SVC GRP is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 301.00 in INFORMATION SVC GRP on September 3, 2024 and sell it today you would earn a total of 45.00 from holding INFORMATION SVC GRP or generate 14.95% 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. INFORMATION SVC GRP
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| INFORMATION SVC GRP |
GRIFFIN MINING and INFORMATION SVC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and INFORMATION SVC
The main advantage of trading using opposite GRIFFIN MINING and INFORMATION SVC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, INFORMATION SVC 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 INFORMATION SVC will offset losses from the drop in INFORMATION SVC's long position.| GRIFFIN MINING vs. Cardinal Health | GRIFFIN MINING vs. ALERION CLEANPOWER | GRIFFIN MINING vs. Clean Energy Fuels | GRIFFIN MINING vs. FEMALE HEALTH |
| INFORMATION SVC vs. TOTAL GABON | INFORMATION SVC vs. Walgreens Boots Alliance | INFORMATION SVC vs. Peak Resources Limited |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |