Correlation Between Lowland Investment and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Lowland Investment 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 Lowland Investment and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lowland Investment Co and Griffin Mining, you can compare the effects of market volatilities on Lowland Investment 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 Lowland Investment with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lowland Investment and Griffin Mining.
Diversification Opportunities for Lowland Investment and Griffin Mining
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lowland and Griffin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lowland Investment Co and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Lowland Investment 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 Lowland Investment Co 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 has no effect on the direction of Lowland Investment i.e., Lowland Investment and Griffin Mining go up and down completely randomly.
Pair Corralation between Lowland Investment and Griffin Mining
Assuming the 90 days trading horizon Lowland Investment is expected to generate 3.0 times less return on investment than Griffin Mining. But when comparing it to its historical volatility, Lowland Investment Co is 2.37 times less risky than Griffin Mining. It trades about 0.0 of its potential returns per unit of risk. Griffin Mining is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 14,700 in Griffin Mining on September 3, 2024 and sell it today you would lose (500.00) from holding Griffin Mining or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lowland Investment Co vs. Griffin Mining
Performance |
| Timeline |
| Lowland Investment |
| Griffin Mining |
Lowland Investment and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lowland Investment and Griffin Mining
The main advantage of trading using opposite Lowland Investment and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lowland Investment 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.| Lowland Investment vs. Induction Healthcare Group | Lowland Investment vs. Charter Communications Cl | Lowland Investment vs. Eco Animal Health | Lowland Investment vs. Zoom Video Communications |
| Griffin Mining vs. Hilton Food Group | Griffin Mining vs. Universal Music Group | Griffin Mining vs. Universal Display Corp | Griffin Mining vs. UNIQA Insurance Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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