Correlation Between Oshidori International and Griffon
Can any of the company-specific risk be diversified away by investing in both Oshidori International 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 Oshidori International and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshidori International Holdings and Griffon, you can compare the effects of market volatilities on Oshidori International 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 Oshidori International with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshidori International and Griffon.
Diversification Opportunities for Oshidori International and Griffon
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oshidori and Griffon is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Oshidori International 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 Oshidori International Holdings 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 Oshidori International i.e., Oshidori International and Griffon go up and down completely randomly.
Pair Corralation between Oshidori International and Griffon
Assuming the 90 days horizon Oshidori International Holdings is expected to generate 49.37 times more return on investment than Griffon. However, Oshidori International is 49.37 times more volatile than Griffon. It trades about 0.21 of its potential returns per unit of risk. Griffon is currently generating about 0.3 per unit of risk. If you would invest 0.07 in Oshidori International Holdings on August 30, 2024 and sell it today you would earn a total of 0.93 from holding Oshidori International Holdings or generate 1328.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oshidori International Holding vs. Griffon
Performance |
| Timeline |
| Oshidori International |
| Griffon |
Oshidori International and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshidori International and Griffon
The main advantage of trading using opposite Oshidori International and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshidori International 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.| Oshidori International vs. Anterix | Oshidori International vs. Bt Brands | Oshidori International vs. Socket Mobile | Oshidori International vs. Ituran Location and |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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