Correlation Between Mammoth Energy and Griffon
Can any of the company-specific risk be diversified away by investing in both Mammoth Energy 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 Mammoth Energy and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mammoth Energy Services and Griffon, you can compare the effects of market volatilities on Mammoth Energy 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 Mammoth Energy with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mammoth Energy and Griffon.
Diversification Opportunities for Mammoth Energy and Griffon
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mammoth and Griffon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mammoth Energy Services and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Mammoth Energy 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 Mammoth Energy Services 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 Mammoth Energy i.e., Mammoth Energy and Griffon go up and down completely randomly.
Pair Corralation between Mammoth Energy and Griffon
Given the investment horizon of 90 days Mammoth Energy Services is expected to under-perform the Griffon. In addition to that, Mammoth Energy is 1.19 times more volatile than Griffon. It trades about -0.01 of its total potential returns per unit of risk. Griffon is currently generating about 0.1 per unit of volatility. If you would invest 4,561 in Griffon on August 24, 2024 and sell it today you would earn a total of 3,567 from holding Griffon or generate 78.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mammoth Energy Services vs. Griffon
Performance |
| Timeline |
| Mammoth Energy Services |
| Griffon |
Mammoth Energy and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mammoth Energy and Griffon
The main advantage of trading using opposite Mammoth Energy and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mammoth Energy 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.| Mammoth Energy vs. Matthews International | Mammoth Energy vs. Griffon | Mammoth Energy vs. Steel Partners Holdings | Mammoth Energy vs. Compass Diversified Holdings |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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