Correlation Between Vindicator Silver-Lead and Griffon

Can any of the company-specific risk be diversified away by investing in both Vindicator Silver-Lead and Griffon 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 Vindicator Silver-Lead and Griffon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vindicator Silver Lead Mining and Griffon, you can compare the effects of market volatilities on Vindicator Silver-Lead 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 Vindicator Silver-Lead with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vindicator Silver-Lead and Griffon.

Diversification Opportunities for Vindicator Silver-Lead and Griffon

-0.19

Correlation Coefficient

Vindicator Silver-Lead  Griffon

Good diversification

The 3 months correlation between Vindicator and Griffon is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Vindicator Silver Lead Mining and Griffon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon and Vindicator Silver-Lead 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 Vindicator Silver Lead Mining 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 Vindicator Silver-Lead i.e., Vindicator Silver-Lead and Griffon go up and down completely randomly.

Pair Corralation between Vindicator Silver-Lead and Griffon

Given the investment horizon of 90 days Vindicator Silver Lead Mining is expected to generate 4.02 times more return on investment than Griffon. However, Vindicator Silver-Lead is 4.02 times more volatile than Griffon. It trades about 0.03 of its potential returns per unit of risk. Griffon is currently generating about 0.04 per unit of risk. If you would invest  22.00  in Vindicator Silver Lead Mining on October 2, 2024 and sell it today you would lose (10.00) from holding Vindicator Silver Lead Mining or give up 45.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.56%
Values	Daily Returns

Vindicator Silver Lead Mining  vs.  Griffon

Vindicator Silver Lead

Risk-Adjusted Performance

0 of 100

Very Weak

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

Griffon

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Griffon are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical and fundamental indicators, Griffon may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Vindicator Silver-Lead and Griffon

The main advantage of trading using opposite Vindicator Silver-Lead and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vindicator Silver-Lead 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 Vindicator Silver Lead Mining 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.