Correlation Between Tyson Foods and Griffon
Can any of the company-specific risk be diversified away by investing in both Tyson Foods 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 Tyson Foods and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tyson Foods and Griffon, you can compare the effects of market volatilities on Tyson Foods 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 Tyson Foods with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tyson Foods and Griffon.
Diversification Opportunities for Tyson Foods and Griffon
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tyson and Griffon is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Tyson Foods and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Tyson Foods 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 Tyson Foods 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 Tyson Foods i.e., Tyson Foods and Griffon go up and down completely randomly.
Pair Corralation between Tyson Foods and Griffon
Considering the 90-day investment horizon Tyson Foods is expected to generate 3.0 times less return on investment than Griffon. But when comparing it to its historical volatility, Tyson Foods is 1.84 times less risky than Griffon. It trades about 0.06 of its potential returns per unit of risk. Griffon is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,580 in Griffon on August 31, 2024 and sell it today you would earn a total of 4,850 from holding Griffon or generate 135.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tyson Foods vs. Griffon
Performance |
| Timeline |
| Tyson Foods |
| Griffon |
Tyson Foods and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tyson Foods and Griffon
The main advantage of trading using opposite Tyson Foods and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tyson Foods 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.| Tyson Foods vs. Cal Maine Foods | Tyson Foods vs. Dole PLC | Tyson Foods vs. Adecoagro SA | Tyson Foods vs. Fresh Del Monte |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |