Correlation Between Granite Construction and COFCO Joycome
Can any of the company-specific risk be diversified away by investing in both Granite Construction and COFCO Joycome 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 Construction and COFCO Joycome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Construction and COFCO Joycome Foods, you can compare the effects of market volatilities on Granite Construction and COFCO Joycome 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 Construction with a short position of COFCO Joycome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and COFCO Joycome.
Diversification Opportunities for Granite Construction and COFCO Joycome
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Granite and COFCO is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction and COFCO Joycome Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COFCO Joycome Foods and Granite Construction 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 Construction are associated (or correlated) with COFCO Joycome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COFCO Joycome Foods has no effect on the direction of Granite Construction i.e., Granite Construction and COFCO Joycome go up and down completely randomly.
Pair Corralation between Granite Construction and COFCO Joycome
Assuming the 90 days trading horizon Granite Construction is expected to generate 0.39 times more return on investment than COFCO Joycome. However, Granite Construction is 2.53 times less risky than COFCO Joycome. It trades about -0.21 of its potential returns per unit of risk. COFCO Joycome Foods is currently generating about -0.13 per unit of risk. If you would invest 8,886 in Granite Construction on October 16, 2024 and sell it today you would lose (336.00) from holding Granite Construction or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Granite Construction vs. COFCO Joycome Foods
Performance |
| Timeline |
| Granite Construction |
| COFCO Joycome Foods |
Granite Construction and COFCO Joycome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and COFCO Joycome
The main advantage of trading using opposite Granite Construction and COFCO Joycome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, COFCO Joycome 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 COFCO Joycome will offset losses from the drop in COFCO Joycome's long position.| Granite Construction vs. VIVA WINE GROUP | Granite Construction vs. PennantPark Investment | Granite Construction vs. TOREX SEMICONDUCTOR LTD | Granite Construction vs. Scottish Mortgage Investment |
| COFCO Joycome vs. Cairo Communication SpA | COFCO Joycome vs. ecotel communication ag | COFCO Joycome vs. Harmony Gold Mining | COFCO Joycome vs. Zoom Video Communications |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |