Correlation Between Granite Falls and Eastern
Can any of the company-specific risk be diversified away by investing in both Granite Falls and Eastern 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 Falls and Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Falls Energy and Eastern Co, you can compare the effects of market volatilities on Granite Falls and Eastern 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 Falls with a short position of Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Falls and Eastern.
Diversification Opportunities for Granite Falls and Eastern
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Granite and Eastern is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Granite Falls Energy and Eastern Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern and Granite Falls 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 Falls Energy are associated (or correlated) with Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern has no effect on the direction of Granite Falls i.e., Granite Falls and Eastern go up and down completely randomly.
Pair Corralation between Granite Falls and Eastern
If you would invest 300,000 in Granite Falls Energy on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Granite Falls Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Granite Falls Energy vs. Eastern Co
Performance |
| Timeline |
| Granite Falls Energy |
| Eastern |
Granite Falls and Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Falls and Eastern
The main advantage of trading using opposite Granite Falls and Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Falls position performs unexpectedly, Eastern 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 Eastern will offset losses from the drop in Eastern's long position.| Granite Falls vs. European Wax Center | Granite Falls vs. Lincoln Electric Holdings | Granite Falls vs. Ardelyx | Granite Falls vs. Mink Therapeutics |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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