Correlation Between Caltagirone SpA and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Caltagirone SpA 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 Caltagirone SpA and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caltagirone SpA and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Caltagirone SpA 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 Caltagirone SpA with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caltagirone SpA and GRIFFIN MINING.
Diversification Opportunities for Caltagirone SpA and GRIFFIN MINING
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caltagirone and GRIFFIN is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Caltagirone SpA and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD and Caltagirone SpA 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 Caltagirone SpA 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 LTD has no effect on the direction of Caltagirone SpA i.e., Caltagirone SpA and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Caltagirone SpA and GRIFFIN MINING
Assuming the 90 days trading horizon Caltagirone SpA is expected to generate 1.14 times less return on investment than GRIFFIN MINING. In addition to that, Caltagirone SpA is 1.15 times more volatile than GRIFFIN MINING LTD. It trades about 0.09 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.12 per unit of volatility. If you would invest 90.00 in GRIFFIN MINING LTD on September 14, 2024 and sell it today you would earn a total of 82.00 from holding GRIFFIN MINING LTD or generate 91.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caltagirone SpA vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Caltagirone SpA |
| GRIFFIN MINING LTD |
Caltagirone SpA and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caltagirone SpA and GRIFFIN MINING
The main advantage of trading using opposite Caltagirone SpA and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caltagirone SpA 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.| Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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