Correlation Between Steven Madden and Griffon
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By analyzing existing cross correlation between Steven Madden and Griffon 575, you can compare the effects of market volatilities on Steven Madden 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 Steven Madden with a short position of Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steven Madden and Griffon.
Diversification Opportunities for Steven Madden and Griffon
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Steven and Griffon is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Steven Madden and Griffon 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 575 and Steven Madden 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 Steven Madden 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 Steven Madden i.e., Steven Madden and Griffon go up and down completely randomly.
Pair Corralation between Steven Madden and Griffon
Given the investment horizon of 90 days Steven Madden is expected to generate 2.22 times more return on investment than Griffon. However, Steven Madden is 2.22 times more volatile than Griffon 575. It trades about 0.05 of its potential returns per unit of risk. Griffon 575 is currently generating about 0.01 per unit of risk. If you would invest 3,196 in Steven Madden on September 4, 2024 and sell it today you would earn a total of 1,422 from holding Steven Madden or generate 44.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Steven Madden vs. Griffon 575
Performance |
Timeline |
Steven Madden |
Griffon 575 |
Steven Madden and Griffon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Steven Madden and Griffon
The main advantage of trading using opposite Steven Madden and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steven Madden 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.Steven Madden vs. Weyco Group | Steven Madden vs. Caleres | Steven Madden vs. Rocky Brands | Steven Madden vs. Designer Brands |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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