Correlation Between Cleanaway Waste and GRIFFIN MINING

Can any of the company-specific risk be diversified away by investing in both Cleanaway Waste 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 Cleanaway Waste and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cleanaway Waste Management and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Cleanaway Waste 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 Cleanaway Waste with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleanaway Waste and GRIFFIN MINING.

Diversification Opportunities for Cleanaway Waste and GRIFFIN MINING

0.43

Correlation Coefficient

Cleanaway Waste  GRIFFIN MINING

Very weak diversification

The 3 months correlation between Cleanaway and GRIFFIN is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cleanaway Waste Management 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 Cleanaway Waste 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 Cleanaway Waste Management 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 Cleanaway Waste i.e., Cleanaway Waste and GRIFFIN MINING go up and down completely randomly.

Pair Corralation between Cleanaway Waste and GRIFFIN MINING

Assuming the 90 days trading horizon Cleanaway Waste Management is expected to under-perform the GRIFFIN MINING. In addition to that, Cleanaway Waste is 1.45 times more volatile than GRIFFIN MINING LTD. It trades about -0.06 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.13 per unit of volatility. If you would invest  167.00  in GRIFFIN MINING LTD on October 7, 2024 and sell it today you would earn a total of  14.00  from holding GRIFFIN MINING LTD or generate 8.38% return on investment over 90 days.

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

Cleanaway Waste Management  vs.  GRIFFIN MINING LTD

Cleanaway Waste Mana

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cleanaway Waste Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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

Pair Trading with Cleanaway Waste and GRIFFIN MINING

The main advantage of trading using opposite Cleanaway Waste and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleanaway Waste 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 Cleanaway Waste Management 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.