Correlation Between Veolia Environnement and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Veolia Environnement 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 Veolia Environnement and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veolia Environnement SA and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Veolia Environnement 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 Veolia Environnement with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veolia Environnement and GRIFFIN MINING.
Diversification Opportunities for Veolia Environnement and GRIFFIN MINING
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Veolia and GRIFFIN is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Veolia Environnement SA 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 Veolia Environnement 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 Veolia Environnement SA 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 Veolia Environnement i.e., Veolia Environnement and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Veolia Environnement and GRIFFIN MINING
Assuming the 90 days trading horizon Veolia Environnement SA is expected to generate 0.96 times more return on investment than GRIFFIN MINING. However, Veolia Environnement SA is 1.04 times less risky than GRIFFIN MINING. It trades about 0.1 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.05 per unit of risk. If you would invest 1,380 in Veolia Environnement SA on September 14, 2024 and sell it today you would earn a total of 40.00 from holding Veolia Environnement SA or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Veolia Environnement SA vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Veolia Environnement |
| GRIFFIN MINING LTD |
Veolia Environnement and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veolia Environnement and GRIFFIN MINING
The main advantage of trading using opposite Veolia Environnement and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veolia Environnement 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.| Veolia Environnement vs. TITANIUM TRANSPORTGROUP | Veolia Environnement vs. Broadridge Financial Solutions | Veolia Environnement vs. Texas Roadhouse | Veolia Environnement vs. Liberty Broadband |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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