Correlation Between Griffin Mining and Bisichi Mining
Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Bisichi 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 Griffin Mining and Bisichi Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Bisichi Mining PLC, you can compare the effects of market volatilities on Griffin Mining and Bisichi 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 Griffin Mining with a short position of Bisichi Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Bisichi Mining.
Diversification Opportunities for Griffin Mining and Bisichi Mining
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Griffin and Bisichi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Griffin Mining and Bisichi Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bisichi Mining PLC and Griffin Mining 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 Griffin Mining are associated (or correlated) with Bisichi Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bisichi Mining PLC has no effect on the direction of Griffin Mining i.e., Griffin Mining and Bisichi Mining go up and down completely randomly.
Pair Corralation between Griffin Mining and Bisichi Mining
Assuming the 90 days trading horizon Griffin Mining is expected to generate 3.69 times less return on investment than Bisichi Mining. But when comparing it to its historical volatility, Griffin Mining is 1.1 times less risky than Bisichi Mining. It trades about 0.01 of its potential returns per unit of risk. Bisichi Mining PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10,750 in Bisichi Mining PLC on September 25, 2024 and sell it today you would earn a total of 500.00 from holding Bisichi Mining PLC or generate 4.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Griffin Mining vs. Bisichi Mining PLC
Performance |
Timeline |
Griffin Mining |
Bisichi Mining PLC |
Griffin Mining and Bisichi Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Griffin Mining and Bisichi Mining
The main advantage of trading using opposite Griffin Mining and Bisichi Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Bisichi 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 Bisichi Mining will offset losses from the drop in Bisichi Mining's long position.Griffin Mining vs. Givaudan SA | Griffin Mining vs. Antofagasta PLC | Griffin Mining vs. Ferrexpo PLC | Griffin Mining vs. Atalaya Mining |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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