Correlation Between Brockhaus Capital and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital 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 Brockhaus Capital and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Brockhaus Capital 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 Brockhaus Capital with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and GRIFFIN MINING.
Diversification Opportunities for Brockhaus Capital and GRIFFIN MINING
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brockhaus and GRIFFIN is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management 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 Brockhaus Capital 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 Brockhaus Capital Management 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 Brockhaus Capital i.e., Brockhaus Capital and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Brockhaus Capital and GRIFFIN MINING
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the GRIFFIN MINING. In addition to that, Brockhaus Capital is 1.02 times more volatile than GRIFFIN MINING LTD. It trades about -0.15 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about -0.02 per unit of volatility. If you would invest 178.00 in GRIFFIN MINING LTD on September 14, 2024 and sell it today you would lose (6.00) from holding GRIFFIN MINING LTD or give up 3.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Brockhaus Capital Management vs. GRIFFIN MINING LTD
Performance |
Timeline |
Brockhaus Capital |
GRIFFIN MINING LTD |
Brockhaus Capital and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brockhaus Capital and GRIFFIN MINING
The main advantage of trading using opposite Brockhaus Capital and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital 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.Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. SIVERS SEMICONDUCTORS AB |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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