Correlation Between Sabre Corpo and Griffon
Can any of the company-specific risk be diversified away by investing in both Sabre Corpo 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 Sabre Corpo and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Corpo and Griffon, you can compare the effects of market volatilities on Sabre Corpo 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 Sabre Corpo with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Griffon.
Diversification Opportunities for Sabre Corpo and Griffon
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sabre and Griffon is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Sabre Corpo 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 Sabre Corpo 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 Sabre Corpo i.e., Sabre Corpo and Griffon go up and down completely randomly.
Pair Corralation between Sabre Corpo and Griffon
Given the investment horizon of 90 days Sabre Corpo is expected to generate 34.43 times less return on investment than Griffon. In addition to that, Sabre Corpo is 1.73 times more volatile than Griffon. It trades about 0.0 of its total potential returns per unit of risk. Griffon is currently generating about 0.09 per unit of volatility. If you would invest 3,195 in Griffon on August 28, 2024 and sell it today you would earn a total of 5,321 from holding Griffon or generate 166.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Corpo vs. Griffon
Performance |
| Timeline |
| Sabre Corpo |
| Griffon |
Sabre Corpo and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Corpo and Griffon
The main advantage of trading using opposite Sabre Corpo and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo 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.| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar Corp |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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