Correlation Between Leggett Platt and GRIFFIN MINING

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Leggett Platt 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 Leggett Platt and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leggett Platt Incorporated and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Leggett Platt 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 Leggett Platt with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggett Platt and GRIFFIN MINING.

Diversification Opportunities for Leggett Platt and GRIFFIN MINING

-0.69
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Leggett and GRIFFIN is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Leggett Platt Incorporated 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 Leggett Platt 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 Leggett Platt Incorporated 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 Leggett Platt i.e., Leggett Platt and GRIFFIN MINING go up and down completely randomly.

Pair Corralation between Leggett Platt and GRIFFIN MINING

Assuming the 90 days horizon Leggett Platt Incorporated is expected to under-perform the GRIFFIN MINING. In addition to that, Leggett Platt is 1.15 times more volatile than GRIFFIN MINING LTD. It trades about -0.09 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.14 per unit of volatility. If you would invest  174.00  in GRIFFIN MINING LTD on December 21, 2024 and sell it today you would earn a total of  40.00  from holding GRIFFIN MINING LTD or generate 22.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Leggett Platt Incorporated  vs.  GRIFFIN MINING LTD

 Performance 
       Timeline  
Leggett Platt 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Leggett Platt Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
GRIFFIN MINING LTD 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GRIFFIN MINING LTD are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GRIFFIN MINING reported solid returns over the last few months and may actually be approaching a breakup point.

Leggett Platt and GRIFFIN MINING Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Leggett Platt and GRIFFIN MINING

The main advantage of trading using opposite Leggett Platt and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggett Platt 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.
The idea behind Leggett Platt Incorporated and GRIFFIN MINING LTD 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine