Correlation Between ONCOR and Griffon
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By analyzing existing cross correlation between ONCOR ELEC DELIVERY and Griffon, you can compare the effects of market volatilities on ONCOR 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 ONCOR with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONCOR and Griffon.
Diversification Opportunities for ONCOR and Griffon
Weak diversification
The 3 months correlation between ONCOR and Griffon is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ONCOR ELEC DELIVERY and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and ONCOR 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 ONCOR ELEC DELIVERY 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 ONCOR i.e., ONCOR and Griffon go up and down completely randomly.
Pair Corralation between ONCOR and Griffon
Assuming the 90 days trading horizon ONCOR is expected to generate 1.81 times less return on investment than Griffon. But when comparing it to its historical volatility, ONCOR ELEC DELIVERY is 1.97 times less risky than Griffon. It trades about 0.37 of its potential returns per unit of risk. Griffon is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 6,274 in Griffon on September 1, 2024 and sell it today you would earn a total of 2,156 from holding Griffon or generate 34.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
ONCOR ELEC DELIVERY vs. Griffon
Performance |
| Timeline |
| ONCOR ELEC DELIVERY |
| Griffon |
ONCOR and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONCOR and Griffon
The main advantage of trading using opposite ONCOR and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONCOR 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.| ONCOR vs. Willamette Valley Vineyards | ONCOR vs. Suntory Beverage Food | ONCOR vs. Tencent Music Entertainment | ONCOR vs. Warner Music Group |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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