Correlation Between SOUTHERN and Griffon
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By analyzing existing cross correlation between SOUTHERN PER CORP and Griffon, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Griffon.
Diversification Opportunities for SOUTHERN and Griffon
Excellent diversification
The 3 months correlation between SOUTHERN and Griffon is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN PER CORP and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and SOUTHERN 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 SOUTHERN PER CORP 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 SOUTHERN i.e., SOUTHERN and Griffon go up and down completely randomly.
Pair Corralation between SOUTHERN and Griffon
Assuming the 90 days trading horizon SOUTHERN PER CORP is expected to under-perform the Griffon. But the bond apears to be less risky and, when comparing its historical volatility, SOUTHERN PER CORP is 2.76 times less risky than Griffon. The bond trades about -0.03 of its potential returns per unit of risk. The Griffon is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 6,270 in Griffon on September 3, 2024 and sell it today you would earn a total of 2,160 from holding Griffon or generate 34.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
SOUTHERN PER CORP vs. Griffon
Performance |
| Timeline |
| SOUTHERN PER P |
| Griffon |
SOUTHERN and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Griffon
The main advantage of trading using opposite SOUTHERN and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. Griffon | SOUTHERN vs. Marine Products | SOUTHERN vs. Mattel Inc | SOUTHERN vs. Dream Finders Homes |
| 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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