Correlation Between Allianz SE and GRIFFIN MINING

Can any of the company-specific risk be diversified away by investing in both Allianz SE 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 Allianz SE and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Allianz SE and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Allianz SE 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 Allianz SE with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and GRIFFIN MINING.

Diversification Opportunities for Allianz SE and GRIFFIN MINING

0.0

Correlation Coefficient

Allianz SE  GRIFFIN MINING

Pay attention - limited upside

The 3 months correlation between Allianz and GRIFFIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE 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 Allianz SE 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 Allianz SE 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 Allianz SE i.e., Allianz SE and GRIFFIN MINING go up and down completely randomly.

Pair Corralation between Allianz SE and GRIFFIN MINING

If you would invest  174.00  in GRIFFIN MINING LTD on December 22, 2024 and sell it today you would earn a total of  40.00  from holding GRIFFIN MINING LTD or generate 22.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Allianz SE  vs.  GRIFFIN MINING LTD

Allianz SE

Risk-Adjusted Performance

Solid

Over the last 90 days Allianz SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Allianz SE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

GRIFFIN MINING LTD

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GRIFFIN MINING LTD are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GRIFFIN MINING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Allianz SE and GRIFFIN MINING

The main advantage of trading using opposite Allianz SE and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE 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.

The idea behind Allianz SE and GRIFFIN MINING LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.