Correlation Between Granite Construction and Tower One
Can any of the company-specific risk be diversified away by investing in both Granite Construction and Tower One 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 Tower One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Construction and Tower One Wireless, you can compare the effects of market volatilities on Granite Construction and Tower One 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 Tower One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and Tower One.
Diversification Opportunities for Granite Construction and Tower One
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Granite and Tower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction and Tower One Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower One Wireless 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 Tower One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower One Wireless has no effect on the direction of Granite Construction i.e., Granite Construction and Tower One go up and down completely randomly.
Pair Corralation between Granite Construction and Tower One
If you would invest 6,538 in Granite Construction on September 3, 2024 and sell it today you would earn a total of 2,712 from holding Granite Construction or generate 41.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Granite Construction vs. Tower One Wireless
Performance |
| Timeline |
| Granite Construction |
| Tower One Wireless |
Granite Construction and Tower One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and Tower One
The main advantage of trading using opposite Granite Construction and Tower One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, Tower One 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 Tower One will offset losses from the drop in Tower One's long position.| Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc | Granite Construction vs. Apple Inc |
| Tower One vs. SLR Investment Corp | Tower One vs. Japan Asia Investment | Tower One vs. Data3 Limited | Tower One vs. Hyrican Informationssysteme Aktiengesellschaft |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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