Correlation Between WALMART and Griffon
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By analyzing existing cross correlation between WALMART INC 65 and Griffon, you can compare the effects of market volatilities on WALMART 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 WALMART with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of WALMART and Griffon.
Diversification Opportunities for WALMART and Griffon
Very good diversification
The 3 months correlation between WALMART and Griffon is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding WALMART INC 65 and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and WALMART 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 WALMART INC 65 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 WALMART i.e., WALMART and Griffon go up and down completely randomly.
Pair Corralation between WALMART and Griffon
Assuming the 90 days trading horizon WALMART is expected to generate 24.32 times less return on investment than Griffon. But when comparing it to its historical volatility, WALMART INC 65 is 3.15 times less risky than Griffon. It trades about 0.01 of its potential returns per unit of risk. Griffon is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,752 in Griffon on August 30, 2024 and sell it today you would earn a total of 1,599 from holding Griffon or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.03% |
| Values | Daily Returns |
WALMART INC 65 vs. Griffon
Performance |
| Timeline |
| WALMART INC 65 |
| Griffon |
WALMART and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WALMART and Griffon
The main advantage of trading using opposite WALMART and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WALMART 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.| WALMART vs. Under Armour C | WALMART vs. Minerals Technologies | WALMART vs. American Eagle Outfitters | WALMART vs. Kaiser Aluminum |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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