Correlation Between Pure Storage and Grand City
Can any of the company-specific risk be diversified away by investing in both Pure Storage and Grand City 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 Pure Storage and Grand City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pure Storage and Grand City Properties, you can compare the effects of market volatilities on Pure Storage and Grand City 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 Pure Storage with a short position of Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Storage and Grand City.
Diversification Opportunities for Pure Storage and Grand City
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pure and Grand is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Pure Storage and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties and Pure Storage 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 Pure Storage are associated (or correlated) with Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Pure Storage i.e., Pure Storage and Grand City go up and down completely randomly.
Pair Corralation between Pure Storage and Grand City
Assuming the 90 days horizon Pure Storage is expected to generate 1.27 times more return on investment than Grand City. However, Pure Storage is 1.27 times more volatile than Grand City Properties. It trades about 0.06 of its potential returns per unit of risk. Grand City Properties is currently generating about 0.03 per unit of risk. If you would invest 2,779 in Pure Storage on August 30, 2024 and sell it today you would earn a total of 2,373 from holding Pure Storage or generate 85.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Pure Storage vs. Grand City Properties
Performance |
| Timeline |
| Pure Storage |
| Grand City Properties |
Pure Storage and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pure Storage and Grand City
The main advantage of trading using opposite Pure Storage and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pure Storage position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.The idea behind Pure Storage and Grand City Properties 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.| Grand City vs. CAREER EDUCATION | Grand City vs. DEVRY EDUCATION GRP | Grand City vs. Vastned Retail NV | Grand City vs. Marie Brizard Wine |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |