Correlation Between EnVVeno Medical and Griffon
Can any of the company-specific risk be diversified away by investing in both EnVVeno Medical 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 EnVVeno Medical and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between enVVeno Medical Corp and Griffon, you can compare the effects of market volatilities on EnVVeno Medical 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 EnVVeno Medical with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of EnVVeno Medical and Griffon.
Diversification Opportunities for EnVVeno Medical and Griffon
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EnVVeno and Griffon is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding enVVeno Medical Corp and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and EnVVeno Medical 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 enVVeno Medical Corp 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 EnVVeno Medical i.e., EnVVeno Medical and Griffon go up and down completely randomly.
Pair Corralation between EnVVeno Medical and Griffon
Given the investment horizon of 90 days enVVeno Medical Corp is expected to under-perform the Griffon. But the stock apears to be less risky and, when comparing its historical volatility, enVVeno Medical Corp is 1.29 times less risky than Griffon. The stock trades about -0.1 of its potential returns per unit of risk. The Griffon is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 6,339 in Griffon on September 3, 2024 and sell it today you would earn a total of 2,091 from holding Griffon or generate 32.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
enVVeno Medical Corp vs. Griffon
Performance |
| Timeline |
| enVVeno Medical Corp |
| Griffon |
EnVVeno Medical and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EnVVeno Medical and Griffon
The main advantage of trading using opposite EnVVeno Medical and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EnVVeno Medical 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.| EnVVeno Medical vs. Ainos Inc | EnVVeno Medical vs. SurModics | EnVVeno Medical vs. LENSAR Inc | EnVVeno Medical vs. IRIDEX |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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