Correlation Between GRIFFIN MINING and Tencent Music
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Tencent Music 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 Tencent Music 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 Tencent Music Entertainment, you can compare the effects of market volatilities on GRIFFIN MINING and Tencent Music 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 Tencent Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Tencent Music.
Diversification Opportunities for GRIFFIN MINING and Tencent Music
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GRIFFIN and Tencent is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Tencent Music Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tencent Music Entert 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 Tencent Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tencent Music Entert has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Tencent Music go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Tencent Music
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.68 times more return on investment than Tencent Music. However, GRIFFIN MINING LTD is 1.47 times less risky than Tencent Music. It trades about 0.06 of its potential returns per unit of risk. Tencent Music Entertainment is currently generating about 0.03 per unit of risk. If you would invest 99.00 in GRIFFIN MINING LTD on October 23, 2024 and sell it today you would earn a total of 72.00 from holding GRIFFIN MINING LTD or generate 72.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GRIFFIN MINING LTD vs. Tencent Music Entertainment
Performance |
Timeline |
GRIFFIN MINING LTD |
Tencent Music Entert |
GRIFFIN MINING and Tencent Music Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRIFFIN MINING and Tencent Music
The main advantage of trading using opposite GRIFFIN MINING and Tencent Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Tencent Music 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 Tencent Music will offset losses from the drop in Tencent Music's long position.GRIFFIN MINING vs. GEAR4MUSIC LS 10 | GRIFFIN MINING vs. TRADEDOUBLER AB SK | GRIFFIN MINING vs. MARKET VECTR RETAIL | GRIFFIN MINING vs. TRADEGATE |
Tencent Music vs. KIMBALL ELECTRONICS | Tencent Music vs. Hochschild Mining plc | Tencent Music vs. STMicroelectronics NV | Tencent Music vs. Delta Electronics Public |
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 Stocks Directory module to find actively traded stocks across global markets.
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