Correlation Between EVS Broadcast and GRIFFIN MINING

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

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

Diversification Opportunities for EVS Broadcast and GRIFFIN MINING

-0.2

Correlation Coefficient

EVS Broadcast  GRIFFIN MINING

Good diversification

The 3 months correlation between EVS and GRIFFIN is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment 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 EVS Broadcast 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 EVS Broadcast Equipment 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 EVS Broadcast i.e., EVS Broadcast and GRIFFIN MINING go up and down completely randomly.

Pair Corralation between EVS Broadcast and GRIFFIN MINING

Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to under-perform the GRIFFIN MINING. But the stock apears to be less risky and, when comparing its historical volatility, EVS Broadcast Equipment is 1.99 times less risky than GRIFFIN MINING. The stock trades about -0.05 of its potential returns per unit of risk. The GRIFFIN MINING LTD is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  167.00  in GRIFFIN MINING LTD on September 2, 2024 and sell it today you would earn a total of  4.00  from holding GRIFFIN MINING LTD or generate 2.4% return on investment over 90 days.

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

EVS Broadcast Equipment  vs.  GRIFFIN MINING LTD

EVS Broadcast Equipment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EVS Broadcast Equipment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, EVS Broadcast is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

GRIFFIN MINING LTD

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GRIFFIN MINING LTD are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, GRIFFIN MINING is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with EVS Broadcast and GRIFFIN MINING

The main advantage of trading using opposite EVS Broadcast and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast 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 EVS Broadcast Equipment 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.