Correlation Between 00108WAF7 and Griffon

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both 00108WAF7 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 00108WAF7 and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEP TEX INC and Griffon 575, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and Griffon.

Diversification Opportunities for 00108WAF7 and Griffon

-0.07
  Correlation Coefficient

Good diversification

The 3 months correlation between 00108WAF7 and Griffon is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and Griffon 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 575 and 00108WAF7 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 AEP TEX INC 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 575 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and Griffon go up and down completely randomly.

Pair Corralation between 00108WAF7 and Griffon

Assuming the 90 days trading horizon AEP TEX INC is expected to generate 150.09 times more return on investment than Griffon. However, 00108WAF7 is 150.09 times more volatile than Griffon 575. It trades about 0.09 of its potential returns per unit of risk. Griffon 575 is currently generating about 0.0 per unit of risk. If you would invest  7,210  in AEP TEX INC on September 1, 2024 and sell it today you would lose (121.00) from holding AEP TEX INC or give up 1.68% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy70.63%
ValuesDaily Returns

AEP TEX INC  vs.  Griffon 575

 Performance 
       Timeline  
AEP TEX INC 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in AEP TEX INC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, 00108WAF7 sustained solid returns over the last few months and may actually be approaching a breakup point.
Griffon 575 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Griffon 575 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Griffon is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

00108WAF7 and Griffon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 00108WAF7 and Griffon

The main advantage of trading using opposite 00108WAF7 and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.
00108WAF7 vs. AKITA Drilling
00108WAF7 vs. GameStop Corp
00108WAF7 vs. Contagious Gaming
00108WAF7 vs. Awilco Drilling PLC
The idea behind AEP TEX INC and Griffon 575 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Griffon vs. AEP TEX INC
Griffon vs. US BANK NATIONAL
Griffon vs. Bank of America
Griffon vs. GE Aerospace
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.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY