Correlation Between Mineral Financial and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Mineral Financial 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 Mineral Financial and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mineral Financial Investments and Griffin Mining, you can compare the effects of market volatilities on Mineral Financial 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 Mineral Financial with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mineral Financial and Griffin Mining.
Diversification Opportunities for Mineral Financial and Griffin Mining
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mineral and Griffin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mineral Financial Investments and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Mineral Financial 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 Mineral Financial Investments 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 Mineral Financial i.e., Mineral Financial and Griffin Mining go up and down completely randomly.
Pair Corralation between Mineral Financial and Griffin Mining
Assuming the 90 days trading horizon Mineral Financial Investments is expected to generate 1.18 times more return on investment than Griffin Mining. However, Mineral Financial is 1.18 times more volatile than Griffin Mining. It trades about 0.13 of its potential returns per unit of risk. Griffin Mining is currently generating about 0.04 per unit of risk. If you would invest 1,200 in Mineral Financial Investments on November 28, 2024 and sell it today you would earn a total of 1,100 from holding Mineral Financial Investments or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mineral Financial Investments vs. Griffin Mining
Performance |
| Timeline |
| Mineral Financial |
| Griffin Mining |
Mineral Financial and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mineral Financial and Griffin Mining
The main advantage of trading using opposite Mineral Financial and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mineral Financial 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.| Mineral Financial vs. Zurich Insurance Group | Mineral Financial vs. Alliance Data Systems | Mineral Financial vs. Vienna Insurance Group | Mineral Financial vs. Extra Space Storage |
| Griffin Mining vs. Air Products Chemicals | Griffin Mining vs. Cardinal Health | Griffin Mining vs. Planet Fitness Cl | Griffin Mining vs. Systemair AB |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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