Correlation Between GRIFFIN MINING and Meituan

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

Diversification Opportunities for GRIFFIN MINING and Meituan

0.0

Correlation Coefficient

GRIFFIN MINING  Meituan

Pay attention - limited upside

The 3 months correlation between GRIFFIN and Meituan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Meituan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meituan 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 Meituan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meituan has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Meituan go up and down completely randomly.

Pair Corralation between GRIFFIN MINING and Meituan

Assuming the 90 days horizon GRIFFIN MINING is expected to generate 2.23 times less return on investment than Meituan. But when comparing it to its historical volatility, GRIFFIN MINING LTD is 1.73 times less risky than Meituan. It trades about 0.09 of its potential returns per unit of risk. Meituan is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  760.00  in Meituan on October 24, 2024 and sell it today you would earn a total of  1,160  from holding Meituan or generate 152.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

GRIFFIN MINING LTD  vs.  Meituan

GRIFFIN MINING LTD

Risk-Adjusted Performance

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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 nearly stable basic indicators, GRIFFIN MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Meituan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Meituan has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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.

Pair Trading with GRIFFIN MINING and Meituan

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

The idea behind GRIFFIN MINING LTD and Meituan 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.