Correlation Between Selective Insurance and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Selective Insurance 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 Selective Insurance and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selective Insurance Group and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Selective Insurance 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 Selective Insurance with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selective Insurance and GRIFFIN MINING.
Diversification Opportunities for Selective Insurance and GRIFFIN MINING
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Selective and GRIFFIN is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Selective Insurance Group 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 Selective Insurance 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 Selective Insurance Group 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 Selective Insurance i.e., Selective Insurance and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Selective Insurance and GRIFFIN MINING
Assuming the 90 days horizon Selective Insurance Group is expected to generate 1.18 times more return on investment than GRIFFIN MINING. However, Selective Insurance is 1.18 times more volatile than GRIFFIN MINING LTD. It trades about 0.22 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.02 per unit of risk. If you would invest 8,416 in Selective Insurance Group on September 1, 2024 and sell it today you would earn a total of 884.00 from holding Selective Insurance Group or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selective Insurance Group vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Selective Insurance |
| GRIFFIN MINING LTD |
Selective Insurance and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selective Insurance and GRIFFIN MINING
The main advantage of trading using opposite Selective Insurance and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selective Insurance 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.| Selective Insurance vs. The Progressive | Selective Insurance vs. Fairfax Financial Holdings | Selective Insurance vs. Insurance Australia Group |
| GRIFFIN MINING vs. Microbot Medical | GRIFFIN MINING vs. VIRGIN WINES UK | GRIFFIN MINING vs. Japan Medical Dynamic | GRIFFIN MINING vs. JAPAN TOBACCO UNSPADR12 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |