Correlation Between PACIFIC and Griffon
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By analyzing existing cross correlation between PACIFIC GAS AND and Griffon, you can compare the effects of market volatilities on PACIFIC 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 PACIFIC with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC and Griffon.
Diversification Opportunities for PACIFIC and Griffon
Good diversification
The 3 months correlation between PACIFIC and Griffon is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC GAS AND and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and PACIFIC 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 PACIFIC GAS AND 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 PACIFIC i.e., PACIFIC and Griffon go up and down completely randomly.
Pair Corralation between PACIFIC and Griffon
Assuming the 90 days trading horizon PACIFIC GAS AND is expected to under-perform the Griffon. But the bond apears to be less risky and, when comparing its historical volatility, PACIFIC GAS AND is 2.06 times less risky than Griffon. The bond trades about -0.11 of its potential returns per unit of risk. The Griffon is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,327 in Griffon on December 24, 2024 and sell it today you would earn a total of 78.00 from holding Griffon or generate 1.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PACIFIC GAS AND vs. Griffon
Performance |
Timeline |
PACIFIC GAS AND |
Griffon |
PACIFIC and Griffon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PACIFIC and Griffon
The main advantage of trading using opposite PACIFIC and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC 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.PACIFIC vs. WPP PLC ADR | PACIFIC vs. Webus International Limited | PACIFIC vs. Stagwell | PACIFIC vs. Townsquare Media |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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