Correlation Between Griffon and Avient Corp
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By analyzing existing cross correlation between Griffon 575 and Avient Corp, you can compare the effects of market volatilities on Griffon and Avient Corp 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 Griffon with a short position of Avient Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and Avient Corp.
Diversification Opportunities for Griffon and Avient Corp
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Griffon and Avient is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Griffon 575 and Avient Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avient Corp and Griffon 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 Griffon 575 are associated (or correlated) with Avient Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avient Corp has no effect on the direction of Griffon i.e., Griffon and Avient Corp go up and down completely randomly.
Pair Corralation between Griffon and Avient Corp
Assuming the 90 days trading horizon Griffon is expected to generate 9.22 times less return on investment than Avient Corp. But when comparing it to its historical volatility, Griffon 575 is 2.47 times less risky than Avient Corp. It trades about 0.02 of its potential returns per unit of risk. Avient Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,220 in Avient Corp on August 29, 2024 and sell it today you would earn a total of 1,908 from holding Avient Corp or generate 59.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Griffon 575 vs. Avient Corp
Performance |
| Timeline |
| Griffon 575 |
| Avient Corp |
Griffon and Avient Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and Avient Corp
The main advantage of trading using opposite Griffon and Avient Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Avient Corp 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 Avient Corp will offset losses from the drop in Avient Corp's long position.| Griffon vs. AEP TEX INC | Griffon vs. US BANK NATIONAL | Griffon vs. Nasdaq Inc | Griffon vs. Vertiv Holdings Co |
| Avient Corp vs. Direxion Daily FTSE | Avient Corp vs. Collegium Pharmaceutical | Avient Corp vs. KKR Co LP | Avient Corp vs. iShares Dividend and |
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 Stocks Directory module to find actively traded stocks across global markets.
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