Correlation Between Summit Environmental and Griffon
Can any of the company-specific risk be diversified away by investing in both Summit Environmental 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 Summit Environmental and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Environmental and Griffon, you can compare the effects of market volatilities on Summit Environmental 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 Summit Environmental with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Environmental and Griffon.
Diversification Opportunities for Summit Environmental and Griffon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Griffon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Environmental and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Summit Environmental 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 Summit Environmental 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 Summit Environmental i.e., Summit Environmental and Griffon go up and down completely randomly.
Pair Corralation between Summit Environmental and Griffon
If you would invest 7,197 in Griffon on November 2, 2024 and sell it today you would earn a total of 463.00 from holding Griffon or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Environmental vs. Griffon
Performance |
| Timeline |
| Summit Environmental |
| Griffon |
Summit Environmental and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Environmental and Griffon
The main advantage of trading using opposite Summit Environmental and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Environmental 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.| Summit Environmental vs. FactSet Research Systems | Summit Environmental vs. ServiceNow | Summit Environmental vs. Helmerich and Payne | Summit Environmental vs. Borr Drilling |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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