Correlation Between Granite Falls and Futuretech
Can any of the company-specific risk be diversified away by investing in both Granite Falls and Futuretech 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 Futuretech 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 Futuretech II Acquisition, you can compare the effects of market volatilities on Granite Falls and Futuretech 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 Futuretech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Falls and Futuretech.
Diversification Opportunities for Granite Falls and Futuretech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Granite and Futuretech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Granite Falls Energy and Futuretech II Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futuretech II Acquisition 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 Futuretech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futuretech II Acquisition has no effect on the direction of Granite Falls i.e., Granite Falls and Futuretech go up and down completely randomly.
Pair Corralation between Granite Falls and Futuretech
Given the investment horizon of 90 days Granite Falls Energy is expected to under-perform the Futuretech. But the pink sheet apears to be less risky and, when comparing its historical volatility, Granite Falls Energy is 1.22 times less risky than Futuretech. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Futuretech II Acquisition is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,179 in Futuretech II Acquisition on November 3, 2024 and sell it today you would lose (56.00) from holding Futuretech II Acquisition or give up 4.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
Granite Falls Energy vs. Futuretech II Acquisition
Performance |
| Timeline |
| Granite Falls Energy |
| Futuretech II Acquisition |
Granite Falls and Futuretech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Falls and Futuretech
The main advantage of trading using opposite Granite Falls and Futuretech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Falls position performs unexpectedly, Futuretech 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 Futuretech will offset losses from the drop in Futuretech's long position.| Granite Falls vs. Deluxe | Granite Falls vs. Lincoln Educational Services | Granite Falls vs. Ihuman Inc | Granite Falls vs. Graham Holdings Co |
| Futuretech vs. Bellevue Life Sciences | Futuretech vs. Manaris Corp | Futuretech vs. AlphaTime Acquisition Corp | Futuretech vs. Embrace Change Acquisition |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |