Correlation Between Griffon and MDU Resources
Can any of the company-specific risk be diversified away by investing in both Griffon and MDU Resources 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 Griffon and MDU Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Griffon and MDU Resources Group, you can compare the effects of market volatilities on Griffon and MDU Resources 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 Griffon with a short position of MDU Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Griffon and MDU Resources.
Diversification Opportunities for Griffon and MDU Resources
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Griffon and MDU is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and MDU Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDU Resources Group and Griffon 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 Griffon are associated (or correlated) with MDU Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MDU Resources Group has no effect on the direction of Griffon i.e., Griffon and MDU Resources go up and down completely randomly.
Pair Corralation between Griffon and MDU Resources
Considering the 90-day investment horizon Griffon is expected to under-perform the MDU Resources. In addition to that, Griffon is 1.66 times more volatile than MDU Resources Group. It trades about -0.01 of its total potential returns per unit of risk. MDU Resources Group is currently generating about 0.13 per unit of volatility. If you would invest 1,710 in MDU Resources Group on July 19, 2025 and sell it today you would earn a total of 207.00 from holding MDU Resources Group or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Griffon vs. MDU Resources Group
Performance |
| Timeline |
| Griffon |
| MDU Resources Group |
Griffon and MDU Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Griffon and MDU Resources
The main advantage of trading using opposite Griffon and MDU Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon position performs unexpectedly, MDU Resources 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 MDU Resources will offset losses from the drop in MDU Resources' long position.| Griffon vs. Matthews International | Griffon vs. Steel Partners Holdings | Griffon vs. Valmont Industries | Griffon vs. Compass Diversified Holdings |
| MDU Resources vs. Valmont Industries | MDU Resources vs. Brookfield Business Partners | MDU Resources vs. Griffon | MDU Resources vs. Matthews International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets |