Correlation Between Granite Falls and Sellas Life
Can any of the company-specific risk be diversified away by investing in both Granite Falls and Sellas Life 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 Sellas Life 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 Sellas Life Sciences, you can compare the effects of market volatilities on Granite Falls and Sellas Life 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 Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Falls and Sellas Life.
Diversification Opportunities for Granite Falls and Sellas Life
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Granite and Sellas is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Granite Falls Energy and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences 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 Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Granite Falls i.e., Granite Falls and Sellas Life go up and down completely randomly.
Pair Corralation between Granite Falls and Sellas Life
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 Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Granite Falls Energy vs. Sellas Life Sciences
Performance |
| Timeline |
| Granite Falls Energy |
| Sellas Life Sciences |
Granite Falls and Sellas Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Falls and Sellas Life
The main advantage of trading using opposite Granite Falls and Sellas Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Falls position performs unexpectedly, Sellas Life 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 Sellas Life will offset losses from the drop in Sellas Life's long position.| Granite Falls vs. European Wax Center | Granite Falls vs. Lincoln Electric Holdings | Granite Falls vs. Ardelyx | Granite Falls vs. Mink Therapeutics |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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