Correlation Between Palantir Technologies and Griffon
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By analyzing existing cross correlation between Palantir Technologies and Griffon 575, you can compare the effects of market volatilities on Palantir Technologies and Griffon 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 Palantir Technologies with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and Griffon.
Diversification Opportunities for Palantir Technologies and Griffon
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Palantir and Griffon is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies and Griffon 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 575 and Palantir Technologies 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 Palantir Technologies are associated (or correlated) with Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon 575 has no effect on the direction of Palantir Technologies i.e., Palantir Technologies and Griffon go up and down completely randomly.
Pair Corralation between Palantir Technologies and Griffon
Given the investment horizon of 90 days Palantir Technologies is expected to generate 5.84 times more return on investment than Griffon. However, Palantir Technologies is 5.84 times more volatile than Griffon 575. It trades about 0.29 of its potential returns per unit of risk. Griffon 575 is currently generating about -0.09 per unit of risk. If you would invest 4,243 in Palantir Technologies on August 16, 2024 and sell it today you would earn a total of 1,675 from holding Palantir Technologies or generate 39.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Palantir Technologies vs. Griffon 575
Performance |
Timeline |
Palantir Technologies |
Griffon 575 |
Palantir Technologies and Griffon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Palantir Technologies and Griffon
The main advantage of trading using opposite Palantir Technologies and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.Palantir Technologies vs. Palo Alto Networks | Palantir Technologies vs. Adobe Systems Incorporated | Palantir Technologies vs. Crowdstrike Holdings | Palantir Technologies vs. Block Inc |
Griffon vs. Steven Madden | Griffon vs. Boot Barn Holdings | Griffon vs. Tencent Music Entertainment | Griffon vs. Academy Sports Outdoors |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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