Correlation Between Grand City and Griffon
Can any of the company-specific risk be diversified away by investing in both Grand City 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 Grand City and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand City Properties and Griffon, you can compare the effects of market volatilities on Grand City 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 Grand City with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand City and Griffon.
Diversification Opportunities for Grand City and Griffon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and Griffon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand City Properties and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Grand City 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 Grand City Properties 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 Grand City i.e., Grand City and Griffon go up and down completely randomly.
Pair Corralation between Grand City and Griffon
If you would invest 6,735 in Griffon on November 8, 2024 and sell it today you would earn a total of 1,356 from holding Griffon or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Grand City Properties vs. Griffon
Performance |
| Timeline |
| Grand City Properties |
| Griffon |
Grand City and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand City and Griffon
The main advantage of trading using opposite Grand City and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand City 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.| Grand City vs. Guangdong Investment Limited | Grand City vs. Fidus Investment Corp | Grand City vs. KNOT Offshore Partners | Grand City vs. Viemed Healthcare |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |