Correlation Between High Yield and Granite Real
Can any of the company-specific risk be diversified away by investing in both High Yield and Granite Real 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 High Yield and Granite Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and Granite Real Estate, you can compare the effects of market volatilities on High Yield and Granite Real 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 High Yield with a short position of Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and Granite Real.
Diversification Opportunities for High Yield and Granite Real
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between High and Granite is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and Granite Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Real Estate and High Yield 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 High Yield Municipal Fund are associated (or correlated) with Granite Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Real Estate has no effect on the direction of High Yield i.e., High Yield and Granite Real go up and down completely randomly.
Pair Corralation between High Yield and Granite Real
Assuming the 90 days horizon High Yield Municipal Fund is expected to generate 0.24 times more return on investment than Granite Real. However, High Yield Municipal Fund is 4.14 times less risky than Granite Real. It trades about 0.0 of its potential returns per unit of risk. Granite Real Estate is currently generating about -0.13 per unit of risk. If you would invest 878.00 in High Yield Municipal Fund on October 20, 2024 and sell it today you would earn a total of 0.00 from holding High Yield Municipal Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
High Yield Municipal Fund vs. Granite Real Estate
Performance |
| Timeline |
| High Yield Municipal |
| Granite Real Estate |
High Yield and Granite Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and Granite Real
The main advantage of trading using opposite High Yield and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield position performs unexpectedly, Granite Real 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 Granite Real will offset losses from the drop in Granite Real's long position.| High Yield vs. High Yield Fund Investor | High Yield vs. Intermediate Term Tax Free Bond | High Yield vs. California High Yield Municipal | High Yield vs. T Rowe Price |
| Granite Real vs. NewtekOne, 800 percent | Granite Real vs. Newtek Business Services | Granite Real vs. B Riley Financial | Granite Real vs. Seneca Foods Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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