Correlation Between Granite City and Jyske Bank

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Can any of the company-specific risk be diversified away by investing in both Granite City and Jyske Bank 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 Jyske Bank 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 Jyske Bank AS, you can compare the effects of market volatilities on Granite City and Jyske Bank 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 Jyske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite City and Jyske Bank.

Diversification Opportunities for Granite City and Jyske Bank

GraniteJyskeDiversified AwayGraniteJyskeDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Granite and Jyske is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Granite City Food and Jyske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jyske Bank AS 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 Jyske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jyske Bank AS has no effect on the direction of Granite City i.e., Granite City and Jyske Bank go up and down completely randomly.

Pair Corralation between Granite City and Jyske Bank

If you would invest  1,406  in Jyske Bank AS on December 3, 2024 and sell it today you would earn a total of  23.00  from holding Jyske Bank AS or generate 1.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Granite City Food  vs.  Jyske Bank AS

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 2468
JavaScript chart by amCharts 3.21.15GCFB JYSKY
       Timeline  
Granite City Food 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Granite City Food has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Granite City is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Jyske Bank AS 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Jyske Bank AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking signals, Jyske Bank is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar14.51515.5

Granite City and Jyske Bank Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 2468
JavaScript chart by amCharts 3.21.15GCFB JYSKY
       Returns  

Pair Trading with Granite City and Jyske Bank

The main advantage of trading using opposite Granite City and Jyske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite City position performs unexpectedly, Jyske Bank 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 Jyske Bank will offset losses from the drop in Jyske Bank's long position.
The idea behind Granite City Food and Jyske Bank AS 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.
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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