Correlation Between GRIFFIN MINING and DEXUS

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

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

Diversification Opportunities for GRIFFIN MINING and DEXUS

0.7

Correlation Coefficient

GRIFFIN MINING  DEXUS

Poor diversification

The 3 months correlation between GRIFFIN and DEXUS is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and DEXUS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEXUS and GRIFFIN MINING 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 GRIFFIN MINING LTD are associated (or correlated) with DEXUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEXUS has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and DEXUS go up and down completely randomly.

Pair Corralation between GRIFFIN MINING and DEXUS

Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.61 times more return on investment than DEXUS. However, GRIFFIN MINING is 1.61 times more volatile than DEXUS. It trades about 0.14 of its potential returns per unit of risk. DEXUS is currently generating about 0.07 per unit of risk. If you would invest  174.00  in GRIFFIN MINING LTD on December 21, 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	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

GRIFFIN MINING LTD  vs.  DEXUS

GRIFFIN MINING LTD

Risk-Adjusted Performance

OK

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.

DEXUS

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in DEXUS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, DEXUS may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with GRIFFIN MINING and DEXUS

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

The idea behind GRIFFIN MINING LTD and DEXUS 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.