Correlation Between GRIFFIN MINING and Cleanaway Waste

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

Diversification Opportunities for GRIFFIN MINING and Cleanaway Waste

0.52

Correlation Coefficient

GRIFFIN MINING  Cleanaway Waste

Very weak diversification

The 3 months correlation between GRIFFIN and Cleanaway is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana 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 Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Cleanaway Waste go up and down completely randomly.

Pair Corralation between GRIFFIN MINING and Cleanaway Waste

Assuming the 90 days horizon GRIFFIN MINING is expected to generate 1.28 times less return on investment than Cleanaway Waste. In addition to that, GRIFFIN MINING is 1.01 times more volatile than Cleanaway Waste Management. It trades about 0.03 of its total potential returns per unit of risk. Cleanaway Waste Management is currently generating about 0.04 per unit of volatility. If you would invest  170.00  in Cleanaway Waste Management on September 3, 2024 and sell it today you would earn a total of  6.00  from holding Cleanaway Waste Management or generate 3.53% return on investment over 90 days.

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

GRIFFIN MINING LTD  vs.  Cleanaway Waste Management

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cleanaway Waste Mana

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cleanaway Waste Management are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Cleanaway Waste is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GRIFFIN MINING and Cleanaway Waste

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

The idea behind GRIFFIN MINING LTD and Cleanaway Waste Management 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 Transaction History module to view history of all your transactions and understand their impact on performance.