Correlation Between Granite City and Uniroyal Global
Can any of the company-specific risk be diversified away by investing in both Granite City and Uniroyal Global 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 Uniroyal Global 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 Uniroyal Global Engineered, you can compare the effects of market volatilities on Granite City and Uniroyal Global 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 Uniroyal Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite City and Uniroyal Global.
Diversification Opportunities for Granite City and Uniroyal Global
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Granite and Uniroyal is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Granite City Food and Uniroyal Global Engineered in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniroyal Global Engi 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 Uniroyal Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniroyal Global Engi has no effect on the direction of Granite City i.e., Granite City and Uniroyal Global go up and down completely randomly.
Pair Corralation between Granite City and Uniroyal Global
Given the investment horizon of 90 days Granite City Food is expected to under-perform the Uniroyal Global. But the pink sheet apears to be less risky and, when comparing its historical volatility, Granite City Food is 2.42 times less risky than Uniroyal Global. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Uniroyal Global Engineered is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Uniroyal Global Engineered on September 3, 2024 and sell it today you would lose (63.92) from holding Uniroyal Global Engineered or give up 99.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 30.65% |
| Values | Daily Returns |
Granite City Food vs. Uniroyal Global Engineered
Performance |
| Timeline |
| Granite City Food |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Uniroyal Global Engi |
Granite City and Uniroyal Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite City and Uniroyal Global
The main advantage of trading using opposite Granite City and Uniroyal Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite City position performs unexpectedly, Uniroyal Global 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 Uniroyal Global will offset losses from the drop in Uniroyal Global's long position.| Granite City vs. Ark Restaurants Corp | Granite City vs. Noble Romans | Granite City vs. Nathans Famous | Granite City vs. Biglari Holdings |
| Uniroyal Global vs. United States Steel | Uniroyal Global vs. Algoma Steel Group | Uniroyal Global vs. Maanshan Iron Steel | Uniroyal Global vs. CECO Environmental 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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