Correlation Between CODERE ONLINE and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both CODERE ONLINE 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 CODERE ONLINE and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CODERE ONLINE LUX and GRIFFIN MINING LTD, you can compare the effects of market volatilities on CODERE ONLINE 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 CODERE ONLINE with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of CODERE ONLINE and GRIFFIN MINING.
Diversification Opportunities for CODERE ONLINE and GRIFFIN MINING
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CODERE and GRIFFIN is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CODERE ONLINE LUX 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 CODERE ONLINE 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 CODERE ONLINE LUX 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 CODERE ONLINE i.e., CODERE ONLINE and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between CODERE ONLINE and GRIFFIN MINING
Assuming the 90 days horizon CODERE ONLINE is expected to generate 1.55 times less return on investment than GRIFFIN MINING. In addition to that, CODERE ONLINE is 1.26 times more volatile than GRIFFIN MINING LTD. It trades about 0.21 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.41 per unit of volatility. If you would invest 171.00 in GRIFFIN MINING LTD on November 29, 2024 and sell it today you would earn a total of 49.00 from holding GRIFFIN MINING LTD or generate 28.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CODERE ONLINE LUX vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| CODERE ONLINE LUX |
| GRIFFIN MINING LTD |
CODERE ONLINE and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CODERE ONLINE and GRIFFIN MINING
The main advantage of trading using opposite CODERE ONLINE and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CODERE ONLINE 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.| CODERE ONLINE vs. The Hanover Insurance | CODERE ONLINE vs. Ping An Insurance | CODERE ONLINE vs. Direct Line Insurance | CODERE ONLINE vs. Vienna Insurance Group |
| GRIFFIN MINING vs. United Natural Foods | GRIFFIN MINING vs. Xinhua Winshare Publishing | GRIFFIN MINING vs. PLANT VEDA FOODS | GRIFFIN MINING vs. CAREER EDUCATION |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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