Correlation Between Granite City and Fabled Copper
Can any of the company-specific risk be diversified away by investing in both Granite City and Fabled Copper 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 Granite City and Fabled Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite City Food and Fabled Copper Corp, you can compare the effects of market volatilities on Granite City and Fabled Copper 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 Granite City with a short position of Fabled Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite City and Fabled Copper.
Diversification Opportunities for Granite City and Fabled Copper
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Granite and Fabled is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Granite City Food and Fabled Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabled Copper Corp and Granite City 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 Granite City Food are associated (or correlated) with Fabled Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabled Copper Corp has no effect on the direction of Granite City i.e., Granite City and Fabled Copper go up and down completely randomly.
Pair Corralation between Granite City and Fabled Copper
If you would invest 5.30 in Fabled Copper Corp on August 31, 2024 and sell it today you would lose (2.78) from holding Fabled Copper Corp or give up 52.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 13.2% |
| Values | Daily Returns |
Granite City Food vs. Fabled Copper Corp
Performance |
| Timeline |
| Granite City Food |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fabled Copper Corp |
Granite City and Fabled Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite City and Fabled Copper
The main advantage of trading using opposite Granite City and Fabled Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite City position performs unexpectedly, Fabled Copper 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 Fabled Copper will offset losses from the drop in Fabled Copper's long position.| Granite City vs. Ark Restaurants Corp | Granite City vs. Noble Romans | Granite City vs. Nathans Famous | Granite City vs. Biglari Holdings |
| Fabled Copper vs. Brixton Metals | Fabled Copper vs. Viscount Mining Corp | Fabled Copper vs. Capitan Mining | Fabled Copper vs. Blackrock Silver 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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