Correlation Between GRIFFIN MINING and OAKTRSPECLENDNEW

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

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

Diversification Opportunities for GRIFFIN MINING and OAKTRSPECLENDNEW

0.05

Correlation Coefficient

GRIFFIN MINING  OAKTRSPECLENDNEW

Significant diversification

The 3 months correlation between GRIFFIN and OAKTRSPECLENDNEW is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW 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 LTD are associated (or correlated) with OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and OAKTRSPECLENDNEW go up and down completely randomly.

Pair Corralation between GRIFFIN MINING and OAKTRSPECLENDNEW

Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the OAKTRSPECLENDNEW. In addition to that, GRIFFIN MINING is 1.17 times more volatile than OAKTRSPECLENDNEW. It trades about -0.08 of its total potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about -0.04 per unit of volatility. If you would invest  1,474  in OAKTRSPECLENDNEW on September 20, 2024 and sell it today you would lose (22.00) from holding OAKTRSPECLENDNEW or give up 1.49% of portfolio value over 90 days.

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

GRIFFIN MINING LTD  vs.  OAKTRSPECLENDNEW

GRIFFIN MINING LTD

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days GRIFFIN MINING LTD has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

OAKTRSPECLENDNEW

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OAKTRSPECLENDNEW are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, OAKTRSPECLENDNEW is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GRIFFIN MINING and OAKTRSPECLENDNEW

The main advantage of trading using opposite GRIFFIN MINING and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.

The idea behind GRIFFIN MINING LTD and OAKTRSPECLENDNEW 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.