Correlation Between Anterix and Granite Real

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Anterix 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 Anterix and Granite Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anterix and Granite Real Estate, you can compare the effects of market volatilities on Anterix 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 Anterix with a short position of Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anterix and Granite Real.

Diversification Opportunities for Anterix and Granite Real

0.7
  Correlation Coefficient

Poor diversification

The 3 months correlation between Anterix and Granite is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Anterix 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 Anterix 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 Anterix 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 Anterix i.e., Anterix and Granite Real go up and down completely randomly.

Pair Corralation between Anterix and Granite Real

Given the investment horizon of 90 days Anterix is expected to generate 1.21 times more return on investment than Granite Real. However, Anterix is 1.21 times more volatile than Granite Real Estate. It trades about 0.03 of its potential returns per unit of risk. Granite Real Estate is currently generating about 0.0 per unit of risk. If you would invest  2,874  in Anterix on September 12, 2024 and sell it today you would earn a total of  502.00  from holding Anterix or generate 17.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy96.31%
ValuesDaily Returns

Anterix  vs.  Granite Real Estate

 Performance 
       Timeline  
Anterix 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Granite Real Estate 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Granite Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Anterix and Granite Real Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anterix and Granite Real

The main advantage of trading using opposite Anterix and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anterix 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.
The idea behind Anterix and Granite Real Estate 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.
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Commodity Directory
Find actively traded commodities issued by global exchanges