Correlation Between Heidelberg Materials and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Heidelberg Materials 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 Heidelberg Materials and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heidelberg Materials AG and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Heidelberg Materials 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 Heidelberg Materials with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heidelberg Materials and GRIFFIN MINING.
Diversification Opportunities for Heidelberg Materials and GRIFFIN MINING
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Heidelberg and GRIFFIN is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Heidelberg Materials AG and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD and Heidelberg Materials 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 Heidelberg Materials AG 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 LTD has no effect on the direction of Heidelberg Materials i.e., Heidelberg Materials and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Heidelberg Materials and GRIFFIN MINING
Assuming the 90 days horizon Heidelberg Materials AG is expected to generate 0.76 times more return on investment than GRIFFIN MINING. However, Heidelberg Materials AG is 1.32 times less risky than GRIFFIN MINING. It trades about 0.34 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.01 per unit of risk. If you would invest 11,700 in Heidelberg Materials AG on September 13, 2024 and sell it today you would earn a total of 985.00 from holding Heidelberg Materials AG or generate 8.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heidelberg Materials AG vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Heidelberg Materials |
| GRIFFIN MINING LTD |
Heidelberg Materials and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heidelberg Materials and GRIFFIN MINING
The main advantage of trading using opposite Heidelberg Materials and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heidelberg Materials 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.| Heidelberg Materials vs. Solstad Offshore ASA | Heidelberg Materials vs. MCEWEN MINING INC | Heidelberg Materials vs. DISTRICT METALS | Heidelberg Materials vs. ADRIATIC METALS LS 013355 |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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