Correlation Between Thrivent High and Griffon
Can any of the company-specific risk be diversified away by investing in both Thrivent High 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 Thrivent High and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Yield and Griffon, you can compare the effects of market volatilities on Thrivent High 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 Thrivent High with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Griffon.
Diversification Opportunities for Thrivent High and Griffon
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thrivent and Griffon is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Yield and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Thrivent High 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 Thrivent High Yield 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 Thrivent High i.e., Thrivent High and Griffon go up and down completely randomly.
Pair Corralation between Thrivent High and Griffon
Assuming the 90 days horizon Thrivent High is expected to generate 6.88 times less return on investment than Griffon. But when comparing it to its historical volatility, Thrivent High Yield is 9.13 times less risky than Griffon. It trades about 0.14 of its potential returns per unit of risk. Griffon is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,634 in Griffon on September 2, 2024 and sell it today you would earn a total of 4,796 from holding Griffon or generate 131.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Yield vs. Griffon
Performance |
| Timeline |
| Thrivent High Yield |
| Griffon |
Thrivent High and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Griffon
The main advantage of trading using opposite Thrivent High and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High 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.| Thrivent High vs. Thrivent Limited Maturity | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Large Cap | Thrivent High vs. Thrivent Opportunity Income |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |