Correlation Between PGT Innovations and Griffon
Can any of the company-specific risk be diversified away by investing in both PGT Innovations 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 PGT Innovations and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGT Innovations and Griffon, you can compare the effects of market volatilities on PGT Innovations 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 PGT Innovations with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGT Innovations and Griffon.
Diversification Opportunities for PGT Innovations and Griffon
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between PGT and Griffon is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding PGT Innovations and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and PGT Innovations 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 PGT Innovations 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 PGT Innovations i.e., PGT Innovations and Griffon go up and down completely randomly.
Pair Corralation between PGT Innovations and Griffon
If you would invest 6,438 in Griffon on August 24, 2024 and sell it today you would earn a total of 1,858 from holding Griffon or generate 28.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
PGT Innovations vs. Griffon
Performance |
| Timeline |
| PGT Innovations |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Griffon |
PGT Innovations and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGT Innovations and Griffon
The main advantage of trading using opposite PGT Innovations and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGT Innovations 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.| PGT Innovations vs. Quanex Building Products | PGT Innovations vs. Janus International Group | PGT Innovations vs. Interface | PGT Innovations vs. Apogee Enterprises |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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