Correlation Between GRIFFIN MINING and ASSOC BR
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and ASSOC BR 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 ASSOC BR 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 ASSOC BR FOODS, you can compare the effects of market volatilities on GRIFFIN MINING and ASSOC BR 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 ASSOC BR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and ASSOC BR.
Diversification Opportunities for GRIFFIN MINING and ASSOC BR
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRIFFIN and ASSOC is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and ASSOC BR FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASSOC BR FOODS 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 ASSOC BR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASSOC BR FOODS has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and ASSOC BR go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and ASSOC BR
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 0.82 times more return on investment than ASSOC BR. However, GRIFFIN MINING LTD is 1.22 times less risky than ASSOC BR. It trades about 0.05 of its potential returns per unit of risk. ASSOC BR FOODS is currently generating about -0.23 per unit of risk. If you would invest 172.00 in GRIFFIN MINING LTD on October 4, 2024 and sell it today you would earn a total of 2.00 from holding GRIFFIN MINING LTD or generate 1.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GRIFFIN MINING LTD vs. ASSOC BR FOODS
Performance |
Timeline |
GRIFFIN MINING LTD |
ASSOC BR FOODS |
GRIFFIN MINING and ASSOC BR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRIFFIN MINING and ASSOC BR
The main advantage of trading using opposite GRIFFIN MINING and ASSOC BR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, ASSOC BR 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 ASSOC BR will offset losses from the drop in ASSOC BR's long position.GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
ASSOC BR vs. SIVERS SEMICONDUCTORS AB | ASSOC BR vs. Talanx AG | ASSOC BR vs. Norsk Hydro ASA | ASSOC BR vs. Volkswagen AG |
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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