Correlation Between GRIFFIN MINING and Scandinavian Tobacco

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Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Scandinavian Tobacco 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 Scandinavian Tobacco 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 Scandinavian Tobacco Group, you can compare the effects of market volatilities on GRIFFIN MINING and Scandinavian Tobacco 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 Scandinavian Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Scandinavian Tobacco.

Diversification Opportunities for GRIFFIN MINING and Scandinavian Tobacco

GRIFFINScandinavianDiversified AwayGRIFFINScandinavianDiversified Away100%
0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between GRIFFIN and Scandinavian is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Scandinavian Tobacco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Tobacco 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 Scandinavian Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Tobacco has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Scandinavian Tobacco go up and down completely randomly.

Pair Corralation between GRIFFIN MINING and Scandinavian Tobacco

Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the Scandinavian Tobacco. In addition to that, GRIFFIN MINING is 1.34 times more volatile than Scandinavian Tobacco Group. It trades about -0.07 of its total potential returns per unit of risk. Scandinavian Tobacco Group is currently generating about -0.03 per unit of volatility. If you would invest  1,370  in Scandinavian Tobacco Group on October 19, 2024 and sell it today you would lose (60.00) from holding Scandinavian Tobacco Group or give up 4.38% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.33%
ValuesDaily Returns

GRIFFIN MINING LTD  vs.  Scandinavian Tobacco Group

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-50
JavaScript chart by amCharts 3.21.15GG7 8ZI
       Timeline  
GRIFFIN MINING LTD 

Risk-Adjusted Performance

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Strong
Very Weak
Over the last 90 days GRIFFIN MINING LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1.651.71.751.81.85
Scandinavian Tobacco 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Scandinavian Tobacco Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Scandinavian Tobacco is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan12.51313.514

GRIFFIN MINING and Scandinavian Tobacco Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.22-2.41-1.6-0.79-0.01350.711.472.222.973.72 0.060.070.080.090.100.110.12
JavaScript chart by amCharts 3.21.15GG7 8ZI
       Returns  

Pair Trading with GRIFFIN MINING and Scandinavian Tobacco

The main advantage of trading using opposite GRIFFIN MINING and Scandinavian Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Scandinavian Tobacco 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 Scandinavian Tobacco will offset losses from the drop in Scandinavian Tobacco's long position.
The idea behind GRIFFIN MINING LTD and Scandinavian Tobacco Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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