Correlation Between Griffon and PACIFIC
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By analyzing existing cross correlation between Griffon and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Griffon and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and PACIFIC.
Diversification Opportunities for Griffon and PACIFIC
Very weak diversification
The 3 months correlation between Griffon and PACIFIC is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Griffon i.e., Griffon and PACIFIC go up and down completely randomly.
Pair Corralation between Griffon and PACIFIC
Considering the 90-day investment horizon Griffon is expected to under-perform the PACIFIC. In addition to that, Griffon is 4.8 times more volatile than PACIFIC GAS ELECTRIC. It trades about -0.52 of its total potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about 0.04 per unit of volatility. If you would invest 9,807 in PACIFIC GAS ELECTRIC on September 26, 2024 and sell it today you would earn a total of 26.00 from holding PACIFIC GAS ELECTRIC or generate 0.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Griffon vs. PACIFIC GAS ELECTRIC
Performance |
Timeline |
Griffon |
PACIFIC GAS ELECTRIC |
Griffon and PACIFIC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Griffon and PACIFIC
The main advantage of trading using opposite Griffon and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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