Correlation Between SILICON LABORATOR and Griffon
Can any of the company-specific risk be diversified away by investing in both SILICON LABORATOR 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 SILICON LABORATOR and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SILICON LABORATOR and Griffon, you can compare the effects of market volatilities on SILICON LABORATOR 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 SILICON LABORATOR with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of SILICON LABORATOR and Griffon.
Diversification Opportunities for SILICON LABORATOR and Griffon
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SILICON and Griffon is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SILICON LABORATOR and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and SILICON LABORATOR 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 SILICON LABORATOR 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 SILICON LABORATOR i.e., SILICON LABORATOR and Griffon go up and down completely randomly.
Pair Corralation between SILICON LABORATOR and Griffon
Assuming the 90 days trading horizon SILICON LABORATOR is expected to generate 0.93 times more return on investment than Griffon. However, SILICON LABORATOR is 1.08 times less risky than Griffon. It trades about -0.02 of its potential returns per unit of risk. Griffon is currently generating about -0.27 per unit of risk. If you would invest 12,200 in SILICON LABORATOR on October 14, 2024 and sell it today you would lose (100.00) from holding SILICON LABORATOR or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SILICON LABORATOR vs. Griffon
Performance |
| Timeline |
| SILICON LABORATOR |
| Griffon |
SILICON LABORATOR and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SILICON LABORATOR and Griffon
The main advantage of trading using opposite SILICON LABORATOR and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SILICON LABORATOR 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.| SILICON LABORATOR vs. Synchrony Financial | SILICON LABORATOR vs. The Hanover Insurance | SILICON LABORATOR vs. COSMOSTEEL HLDGS | SILICON LABORATOR vs. Sun Life Financial |
| Griffon vs. Automatic Data Processing | Griffon vs. Information Services International Dentsu | Griffon vs. CANON MARKETING JP | Griffon vs. DATATEC LTD 2 |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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