Correlation Between MARTIN and Griffon
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By analyzing existing cross correlation between MARTIN MARIETTA MATLS and Griffon, you can compare the effects of market volatilities on MARTIN and Griffon 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 MARTIN with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARTIN and Griffon.
Diversification Opportunities for MARTIN and Griffon
Excellent diversification
The 3 months correlation between MARTIN and Griffon is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding MARTIN MARIETTA MATLS and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and MARTIN 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 MARTIN MARIETTA MATLS are associated (or correlated) with Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon has no effect on the direction of MARTIN i.e., MARTIN and Griffon go up and down completely randomly.
Pair Corralation between MARTIN and Griffon
Assuming the 90 days trading horizon MARTIN MARIETTA MATLS is expected to generate 0.2 times more return on investment than Griffon. However, MARTIN MARIETTA MATLS is 4.99 times less risky than Griffon. It trades about -0.16 of its potential returns per unit of risk. Griffon is currently generating about -0.51 per unit of risk. If you would invest 9,726 in MARTIN MARIETTA MATLS on September 29, 2024 and sell it today you would lose (66.00) from holding MARTIN MARIETTA MATLS or give up 0.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 66.67% |
Values | Daily Returns |
MARTIN MARIETTA MATLS vs. Griffon
Performance |
Timeline |
MARTIN MARIETTA MATLS |
Griffon |
MARTIN and Griffon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MARTIN and Griffon
The main advantage of trading using opposite MARTIN and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARTIN position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.The idea behind MARTIN MARIETTA MATLS and Griffon 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.Griffon vs. Steel Partners Holdings | Griffon vs. Brookfield Business Partners | Griffon vs. Tejon Ranch Co | Griffon vs. Compass Diversified Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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