Correlation Between GRIFFIN MINING and Mitsubishi Gas
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Mitsubishi Gas 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 Mitsubishi Gas 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 Mitsubishi Gas Chemical, you can compare the effects of market volatilities on GRIFFIN MINING and Mitsubishi Gas 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 Mitsubishi Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Mitsubishi Gas.
Diversification Opportunities for GRIFFIN MINING and Mitsubishi Gas
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GRIFFIN and Mitsubishi is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Mitsubishi Gas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Gas Chemical 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 Mitsubishi Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Gas Chemical has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Mitsubishi Gas go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Mitsubishi Gas
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.75 times more return on investment than Mitsubishi Gas. However, GRIFFIN MINING is 1.75 times more volatile than Mitsubishi Gas Chemical. It trades about 0.16 of its potential returns per unit of risk. Mitsubishi Gas Chemical is currently generating about -0.13 per unit of risk. If you would invest 171.00 in GRIFFIN MINING LTD on December 25, 2024 and sell it today you would earn a total of 47.00 from holding GRIFFIN MINING LTD or generate 27.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
GRIFFIN MINING LTD vs. Mitsubishi Gas Chemical
Performance |
Timeline |
GRIFFIN MINING LTD |
Mitsubishi Gas Chemical |
GRIFFIN MINING and Mitsubishi Gas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRIFFIN MINING and Mitsubishi Gas
The main advantage of trading using opposite GRIFFIN MINING and Mitsubishi Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Mitsubishi Gas 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 Mitsubishi Gas will offset losses from the drop in Mitsubishi Gas' long position.GRIFFIN MINING vs. SCANSOURCE | GRIFFIN MINING vs. PARKEN Sport Entertainment | GRIFFIN MINING vs. SmarTone Telecommunications Holdings | GRIFFIN MINING vs. Singapore Telecommunications Limited |
Mitsubishi Gas vs. H2O Retailing | Mitsubishi Gas vs. East Africa Metals | Mitsubishi Gas vs. SPARTAN STORES | Mitsubishi Gas vs. Retail Estates NV |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |