Correlation Between Nasdaq and Griffon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nasdaq Inc and Griffon 575, you can compare the effects of market volatilities on Nasdaq 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 Nasdaq with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Griffon.
Diversification Opportunities for Nasdaq and Griffon
Very good diversification
The 3 months correlation between Nasdaq and Griffon is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Griffon 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 575 and Nasdaq 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 Nasdaq Inc 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 575 has no effect on the direction of Nasdaq i.e., Nasdaq and Griffon go up and down completely randomly.
Pair Corralation between Nasdaq and Griffon
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 1.65 times more return on investment than Griffon. However, Nasdaq is 1.65 times more volatile than Griffon 575. It trades about 0.24 of its potential returns per unit of risk. Griffon 575 is currently generating about 0.0 per unit of risk. If you would invest 5,831 in Nasdaq Inc on September 1, 2024 and sell it today you would earn a total of 2,468 from holding Nasdaq Inc or generate 42.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Griffon 575
Performance |
| Timeline |
| Nasdaq Inc |
| Griffon 575 |
Nasdaq and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Griffon
The main advantage of trading using opposite Nasdaq and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 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.The idea behind Nasdaq Inc and Griffon 575 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Griffon vs. AEP TEX INC | Griffon vs. US BANK NATIONAL | Griffon vs. Bank of America | Griffon vs. GE Aerospace |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |