Correlation Between Catalent and Granite Real
Can any of the company-specific risk be diversified away by investing in both Catalent 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 Catalent and Granite Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalent and Granite Real Estate, you can compare the effects of market volatilities on Catalent 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 Catalent with a short position of Granite Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalent and Granite Real.
Diversification Opportunities for Catalent and Granite Real
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catalent and Granite is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Catalent 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 Catalent 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 Catalent 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 Catalent i.e., Catalent and Granite Real go up and down completely randomly.
Pair Corralation between Catalent and Granite Real
If you would invest 6,348 in Catalent on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Catalent or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Catalent vs. Granite Real Estate
Performance |
| Timeline |
| Catalent |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Granite Real Estate |
Catalent and Granite Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalent and Granite Real
The main advantage of trading using opposite Catalent and Granite Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalent 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.| Catalent vs. IQVIA Holdings | Catalent vs. West Pharmaceutical Services | Catalent vs. Charles River Laboratories | Catalent vs. Bio Rad Laboratories |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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