Correlation Between Trainline Plc and Griffin Mining
Can any of the company-specific risk be diversified away by investing in both Trainline Plc 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 Trainline Plc and Griffin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trainline Plc and Griffin Mining, you can compare the effects of market volatilities on Trainline Plc 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 Trainline Plc with a short position of Griffin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trainline Plc and Griffin Mining.
Diversification Opportunities for Trainline Plc and Griffin Mining
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trainline and Griffin is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Trainline Plc and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining and Trainline Plc 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 Trainline Plc 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 has no effect on the direction of Trainline Plc i.e., Trainline Plc and Griffin Mining go up and down completely randomly.
Pair Corralation between Trainline Plc and Griffin Mining
Assuming the 90 days trading horizon Trainline Plc is expected to generate 1.27 times less return on investment than Griffin Mining. In addition to that, Trainline Plc is 1.18 times more volatile than Griffin Mining. It trades about 0.05 of its total potential returns per unit of risk. Griffin Mining is currently generating about 0.07 per unit of volatility. If you would invest 7,570 in Griffin Mining on September 19, 2024 and sell it today you would earn a total of 6,930 from holding Griffin Mining or generate 91.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trainline Plc vs. Griffin Mining
Performance |
| Timeline |
| Trainline Plc |
| Griffin Mining |
Trainline Plc and Griffin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trainline Plc and Griffin Mining
The main advantage of trading using opposite Trainline Plc and Griffin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trainline Plc 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.| Trainline Plc vs. Berkshire Hathaway | Trainline Plc vs. Hyundai Motor | Trainline Plc vs. Samsung Electronics Co | Trainline Plc vs. Samsung Electronics Co |
| Griffin Mining vs. Systemair AB | Griffin Mining vs. Trainline Plc | Griffin Mining vs. Compagnie Plastic Omnium | Griffin Mining vs. BW Offshore |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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