Correlation Between Granite Construction and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Granite Construction and JIAHUA STORES 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 JIAHUA STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Construction and JIAHUA STORES, you can compare the effects of market volatilities on Granite Construction and JIAHUA STORES 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 JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and JIAHUA STORES.
Diversification Opportunities for Granite Construction and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Granite and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES 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 JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Granite Construction i.e., Granite Construction and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Granite Construction and JIAHUA STORES
If you would invest 3,542 in Granite Construction on October 13, 2024 and sell it today you would earn a total of 4,908 from holding Granite Construction or generate 138.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Granite Construction vs. JIAHUA STORES
Performance |
| Timeline |
| Granite Construction |
| JIAHUA STORES |
Granite Construction and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and JIAHUA STORES
The main advantage of trading using opposite Granite Construction and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| Granite Construction vs. SQUIRREL MEDIA SA | Granite Construction vs. TYSON FOODS A | Granite Construction vs. Flutter Entertainment PLC | Granite Construction vs. CN MODERN DAIRY |
| JIAHUA STORES vs. Federal Agricultural Mortgage | JIAHUA STORES vs. Granite Construction | JIAHUA STORES vs. Sterling Construction | JIAHUA STORES vs. Molson Coors Beverage |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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