Correlation Between Griffin Mining and Air Products

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Can any of the company-specific risk be diversified away by investing in both Griffin Mining and Air Products 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 Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffin Mining and Air Products Chemicals, you can compare the effects of market volatilities on Griffin Mining and Air Products 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 Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffin Mining and Air Products.

Diversification Opportunities for Griffin Mining and Air Products

0.52
  Correlation Coefficient

Very weak diversification

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

Pair Corralation between Griffin Mining and Air Products

Assuming the 90 days trading horizon Griffin Mining is expected to generate 3.17 times less return on investment than Air Products. In addition to that, Griffin Mining is 1.61 times more volatile than Air Products Chemicals. It trades about 0.03 of its total potential returns per unit of risk. Air Products Chemicals is currently generating about 0.14 per unit of volatility. If you would invest  26,345  in Air Products Chemicals on April 25, 2025 and sell it today you would earn a total of  3,412  from holding Air Products Chemicals or generate 12.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.41%
ValuesDaily Returns

Griffin Mining  vs.  Air Products Chemicals

 Performance 
       Timeline  
Griffin Mining 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Griffin Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Griffin Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
Air Products Chemicals 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Air Products Chemicals are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Air Products unveiled solid returns over the last few months and may actually be approaching a breakup point.

Griffin Mining and Air Products Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Griffin Mining and Air Products

The main advantage of trading using opposite Griffin Mining and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffin Mining position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.
The idea behind Griffin Mining and Air Products Chemicals 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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