Correlation Between GameStop Corp and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both GameStop Corp and GRIFFIN MINING 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 GameStop Corp and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and GRIFFIN MINING LTD, you can compare the effects of market volatilities on GameStop Corp and GRIFFIN MINING 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 GameStop Corp with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and GRIFFIN MINING.
Diversification Opportunities for GameStop Corp and GRIFFIN MINING
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GameStop and GRIFFIN is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD and GameStop Corp 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 GameStop Corp are associated (or correlated) with GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of GameStop Corp i.e., GameStop Corp and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between GameStop Corp and GRIFFIN MINING
Assuming the 90 days trading horizon GameStop Corp is expected to under-perform the GRIFFIN MINING. In addition to that, GameStop Corp is 1.11 times more volatile than GRIFFIN MINING LTD. It trades about -0.1 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.15 per unit of volatility. If you would invest 174.00 in GRIFFIN MINING LTD on December 23, 2024 and sell it today you would earn a total of 46.00 from holding GRIFFIN MINING LTD or generate 26.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GameStop Corp vs. GRIFFIN MINING LTD
Performance |
Timeline |
GameStop Corp |
GRIFFIN MINING LTD |
GameStop Corp and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GameStop Corp and GRIFFIN MINING
The main advantage of trading using opposite GameStop Corp and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.GameStop Corp vs. MeVis Medical Solutions | GameStop Corp vs. Solstad Offshore ASA | GameStop Corp vs. SOLSTAD OFFSHORE NK | GameStop Corp vs. Fevertree Drinks PLC |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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