Correlation Between Hansa Investment and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Hansa Investment and Griffin Mining 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 Hansa Investment and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansa Investment and Griffin Mining, you can compare the effects of market volatilities on Hansa Investment and Griffin Mining 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 Hansa Investment with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Investment and Griffin Mining.
Diversification Opportunities for Hansa Investment and Griffin Mining
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hansa and Griffin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Investment and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Hansa Investment 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 Hansa Investment are associated (or correlated) with Griffin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffin Mining has no effect on the direction of Hansa Investment i.e., Hansa Investment and Griffin Mining go up and down completely randomly.
Pair Corralation between Hansa Investment and Griffin Mining
Assuming the 90 days trading horizon Hansa Investment is expected to generate 0.68 times more return on investment than Griffin Mining. However, Hansa Investment is 1.46 times less risky than Griffin Mining. It trades about 0.17 of its potential returns per unit of risk. Griffin Mining is currently generating about -0.12 per unit of risk. If you would invest 22,400 in Hansa Investment on September 13, 2024 and sell it today you would earn a total of 1,300 from holding Hansa Investment or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansa Investment vs. Griffin Mining
Performance |
| Timeline |
| Hansa Investment |
| Griffin Mining |
Hansa Investment and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Investment and Griffin Mining
The main advantage of trading using opposite Hansa Investment and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Investment position performs unexpectedly, Griffin Mining 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 Griffin Mining will offset losses from the drop in Griffin Mining's long position.| Hansa Investment vs. CATCo Reinsurance Opportunities | Hansa Investment vs. BH Macro Limited | Hansa Investment vs. Legal General Group | Hansa Investment vs. TMT Investments PLC |
| Griffin Mining vs. Givaudan SA | Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Atalaya Mining |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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