Correlation Between GRIFFIN MINING and Apple

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

Diversification Opportunities for GRIFFIN MINING and Apple

-0.37

Correlation Coefficient

GRIFFIN MINING  Apple

Very good diversification

The 3 months correlation between GRIFFIN and Apple is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Apple go up and down completely randomly.

Pair Corralation between GRIFFIN MINING and Apple

Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.48 times more return on investment than Apple. However, GRIFFIN MINING is 1.48 times more volatile than Apple Inc. It trades about 0.08 of its potential returns per unit of risk. Apple Inc is currently generating about 0.1 per unit of risk. If you would invest  90.00  in GRIFFIN MINING LTD on October 10, 2024 and sell it today you would earn a total of  91.00  from holding GRIFFIN MINING LTD or generate 101.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GRIFFIN MINING LTD  vs.  Apple Inc

GRIFFIN MINING LTD

Risk-Adjusted Performance

0 of 100

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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Apple Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with GRIFFIN MINING and Apple

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

The idea behind GRIFFIN MINING LTD and Apple Inc 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.