Correlation Between Inflection Point and Griffon
Can any of the company-specific risk be diversified away by investing in both Inflection Point 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 Inflection Point and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflection Point Acquisition and Griffon, you can compare the effects of market volatilities on Inflection Point 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 Inflection Point with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Griffon.
Diversification Opportunities for Inflection Point and Griffon
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Inflection and Griffon is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Inflection Point 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 Inflection Point Acquisition 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 Inflection Point i.e., Inflection Point and Griffon go up and down completely randomly.
Pair Corralation between Inflection Point and Griffon
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 20.18 times more return on investment than Griffon. However, Inflection Point is 20.18 times more volatile than Griffon. It trades about 0.05 of its potential returns per unit of risk. Griffon is currently generating about 0.09 per unit of risk. If you would invest 0.00 in Inflection Point Acquisition on August 28, 2024 and sell it today you would earn a total of 1,086 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.77% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Griffon
Performance |
| Timeline |
| Inflection Point Acq |
| Griffon |
Inflection Point and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Griffon
The main advantage of trading using opposite Inflection Point and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point 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.| Inflection Point vs. Inter Parfums | Inflection Point vs. Weibo Corp | Inflection Point vs. Toro Co | Inflection Point vs. Ziff Davis |
| 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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