Correlation Between GRIFFIN MINING and MUTUIONLINE

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

Diversification Opportunities for GRIFFIN MINING and MUTUIONLINE

-0.11

Correlation Coefficient

GRIFFIN MINING  MUTUIONLINE

Good diversification

The 3 months correlation between GRIFFIN and MUTUIONLINE is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and MUTUIONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUTUIONLINE 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 MUTUIONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUTUIONLINE has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and MUTUIONLINE go up and down completely randomly.

Pair Corralation between GRIFFIN MINING and MUTUIONLINE

Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.15 times more return on investment than MUTUIONLINE. However, GRIFFIN MINING is 1.15 times more volatile than MUTUIONLINE. It trades about 0.06 of its potential returns per unit of risk. MUTUIONLINE is currently generating about 0.0 per unit of risk. If you would invest  150.00  in GRIFFIN MINING LTD on October 26, 2024 and sell it today you would earn a total of  21.00  from holding GRIFFIN MINING LTD or generate 14.0% 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.  MUTUIONLINE

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.

MUTUIONLINE

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MUTUIONLINE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain essential indicators, MUTUIONLINE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with GRIFFIN MINING and MUTUIONLINE

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

The idea behind GRIFFIN MINING LTD and MUTUIONLINE 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.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.