Correlation Between CHINA TONTINE and Granite Construction
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and Granite Construction 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 CHINA TONTINE and Granite Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and Granite Construction, you can compare the effects of market volatilities on CHINA TONTINE and Granite Construction 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 CHINA TONTINE with a short position of Granite Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and Granite Construction.
Diversification Opportunities for CHINA TONTINE and Granite Construction
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and Granite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and Granite Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Construction and CHINA TONTINE 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 CHINA TONTINE WINES are associated (or correlated) with Granite Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Construction has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and Granite Construction go up and down completely randomly.
Pair Corralation between CHINA TONTINE and Granite Construction
If you would invest 7.00 in CHINA TONTINE WINES on November 28, 2024 and sell it today you would earn a total of 0.00 from holding CHINA TONTINE WINES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. Granite Construction
Performance |
| Timeline |
| CHINA TONTINE WINES |
| Granite Construction |
CHINA TONTINE and Granite Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and Granite Construction
The main advantage of trading using opposite CHINA TONTINE and Granite Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, Granite Construction 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 Construction will offset losses from the drop in Granite Construction's long position.| CHINA TONTINE vs. Yanzhou Coal Mining | CHINA TONTINE vs. Kaufman Broad SA | CHINA TONTINE vs. Broadcom | CHINA TONTINE vs. ANGLO ASIAN MINING |
| Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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