Correlation Between Vastned Retail and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and GRIFFIN MINING 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 Vastned Retail and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Vastned Retail and GRIFFIN MINING 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 Vastned Retail with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and GRIFFIN MINING.
Diversification Opportunities for Vastned Retail and GRIFFIN MINING
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vastned and GRIFFIN is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD and Vastned Retail 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 Vastned Retail NV are associated (or correlated) with GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Vastned Retail i.e., Vastned Retail and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Vastned Retail and GRIFFIN MINING
Assuming the 90 days horizon Vastned Retail NV is expected to under-perform the GRIFFIN MINING. But the stock apears to be less risky and, when comparing its historical volatility, Vastned Retail NV is 2.27 times less risky than GRIFFIN MINING. The stock trades about -0.13 of its potential returns per unit of risk. The GRIFFIN MINING LTD is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 174.00 in GRIFFIN MINING LTD on August 28, 2024 and sell it today you would lose (4.00) from holding GRIFFIN MINING LTD or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Vastned Retail NV |
| GRIFFIN MINING LTD |
Vastned Retail and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and GRIFFIN MINING
The main advantage of trading using opposite Vastned Retail and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Vastned Retail vs. Simon Property Group | Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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