Correlation Between GRIFFIN MINING and Fifth Third

Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Fifth Third 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 Fifth Third 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 Fifth Third Bancorp, you can compare the effects of market volatilities on GRIFFIN MINING and Fifth Third 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 Fifth Third. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Fifth Third.

Diversification Opportunities for GRIFFIN MINING and Fifth Third

-0.48

Correlation Coefficient

GRIFFIN MINING  Fifth Third

Very good diversification

The 3 months correlation between GRIFFIN and Fifth is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Fifth Third Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fifth Third Bancorp 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 Fifth Third. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fifth Third Bancorp has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Fifth Third go up and down completely randomly.

Pair Corralation between GRIFFIN MINING and Fifth Third

Assuming the 90 days horizon GRIFFIN MINING LTD is expected to under-perform the Fifth Third. In addition to that, GRIFFIN MINING is 1.37 times more volatile than Fifth Third Bancorp. It trades about -0.08 of its total potential returns per unit of risk. Fifth Third Bancorp is currently generating about -0.08 per unit of volatility. If you would invest  4,394  in Fifth Third Bancorp on September 20, 2024 and sell it today you would lose (92.00) from holding Fifth Third Bancorp or give up 2.09% of portfolio value over 90 days.

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

GRIFFIN MINING LTD  vs.  Fifth Third Bancorp

GRIFFIN MINING LTD

Risk-Adjusted Performance

0 of 100

Very 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.

Fifth Third Bancorp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fifth Third Bancorp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Fifth Third may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with GRIFFIN MINING and Fifth Third

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

The idea behind GRIFFIN MINING LTD and Fifth Third Bancorp 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.