Correlation Between Greencity Acquisition and Griffon
Can any of the company-specific risk be diversified away by investing in both Greencity Acquisition and Griffon 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 Greencity Acquisition and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greencity Acquisition Corp and Griffon, you can compare the effects of market volatilities on Greencity Acquisition and Griffon 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 Greencity Acquisition with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greencity Acquisition and Griffon.
Diversification Opportunities for Greencity Acquisition and Griffon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greencity and Griffon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greencity Acquisition Corp and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Greencity Acquisition 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 Greencity Acquisition Corp are associated (or correlated) with Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of Greencity Acquisition i.e., Greencity Acquisition and Griffon go up and down completely randomly.
Pair Corralation between Greencity Acquisition and Griffon
If you would invest (100.00) in Greencity Acquisition Corp on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Greencity Acquisition Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Greencity Acquisition Corp vs. Griffon
Performance |
| Timeline |
| Greencity Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Griffon |
Greencity Acquisition and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greencity Acquisition and Griffon
The main advantage of trading using opposite Greencity Acquisition and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greencity Acquisition position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.| Greencity Acquisition vs. Academy Sports Outdoors | Greencity Acquisition vs. Ainsworth Game Technology | Greencity Acquisition vs. Hochschild Mining PLC | Greencity Acquisition vs. Nexstar Broadcasting Group |
| Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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