Correlation Between Clean Energy and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Clean Energy 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 Clean Energy and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clean Energy Fuels and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Clean Energy 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 Clean Energy with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clean Energy and GRIFFIN MINING.
Diversification Opportunities for Clean Energy and GRIFFIN MINING
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clean and GRIFFIN is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Clean Energy Fuels 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 Clean Energy 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 Clean Energy Fuels 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 Clean Energy i.e., Clean Energy and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Clean Energy and GRIFFIN MINING
Assuming the 90 days horizon Clean Energy Fuels is expected to generate 3.21 times more return on investment than GRIFFIN MINING. However, Clean Energy is 3.21 times more volatile than GRIFFIN MINING LTD. It trades about 0.12 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.02 per unit of risk. If you would invest 262.00 in Clean Energy Fuels on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Clean Energy Fuels or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clean Energy Fuels vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Clean Energy Fuels |
| GRIFFIN MINING LTD |
Clean Energy and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clean Energy and GRIFFIN MINING
The main advantage of trading using opposite Clean Energy and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clean Energy 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.| Clean Energy vs. Marathon Petroleum Corp | Clean Energy vs. Neste Oyj | Clean Energy vs. ENEOS Holdings | Clean Energy vs. PTT OILRETBUS FOR BA10 |
| GRIFFIN MINING vs. Cardinal Health | GRIFFIN MINING vs. ALERION CLEANPOWER | GRIFFIN MINING vs. Clean Energy Fuels | GRIFFIN MINING vs. FEMALE HEALTH |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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