Correlation Between Griffon and Tectonic Therapeutic,

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

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

Diversification Opportunities for Griffon and Tectonic Therapeutic,

0.65

Correlation Coefficient

Griffon  Tectonic Therapeutic,

Poor diversification

The 3 months correlation between Griffon and Tectonic is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Tectonic Therapeutic, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tectonic Therapeutic, and Griffon 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 Griffon are associated (or correlated) with Tectonic Therapeutic,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tectonic Therapeutic, has no effect on the direction of Griffon i.e., Griffon and Tectonic Therapeutic, go up and down completely randomly.

Pair Corralation between Griffon and Tectonic Therapeutic,

Considering the 90-day investment horizon Griffon is expected to under-perform the Tectonic Therapeutic,. But the stock apears to be less risky and, when comparing its historical volatility, Griffon is 2.57 times less risky than Tectonic Therapeutic,. The stock trades about -0.43 of its potential returns per unit of risk. The Tectonic Therapeutic, is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  4,916  in Tectonic Therapeutic, on September 28, 2024 and sell it today you would earn a total of  204.00  from holding Tectonic Therapeutic, or generate 4.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Griffon  vs.  Tectonic Therapeutic,

Griffon

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Griffon are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Griffon may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Tectonic Therapeutic,

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tectonic Therapeutic, are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Tectonic Therapeutic, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Griffon and Tectonic Therapeutic,

The main advantage of trading using opposite Griffon and Tectonic Therapeutic, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, Tectonic Therapeutic, 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 Tectonic Therapeutic, will offset losses from the drop in Tectonic Therapeutic,'s long position.

The idea behind Griffon and Tectonic Therapeutic, 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.