Correlation Between Granite Real and Investcorp Credit
Can any of the company-specific risk be diversified away by investing in both Granite Real and Investcorp Credit 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 Real and Investcorp Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Real Estate and Investcorp Credit Management, you can compare the effects of market volatilities on Granite Real and Investcorp Credit 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 Real with a short position of Investcorp Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Real and Investcorp Credit.
Diversification Opportunities for Granite Real and Investcorp Credit
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Granite and Investcorp is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Granite Real Estate and Investcorp Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investcorp Credit and Granite Real 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 Real Estate are associated (or correlated) with Investcorp Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investcorp Credit has no effect on the direction of Granite Real i.e., Granite Real and Investcorp Credit go up and down completely randomly.
Pair Corralation between Granite Real and Investcorp Credit
Assuming the 90 days trading horizon Granite Real Estate is expected to under-perform the Investcorp Credit. In addition to that, Granite Real is 1.39 times more volatile than Investcorp Credit Management. It trades about -0.03 of its total potential returns per unit of risk. Investcorp Credit Management is currently generating about 0.14 per unit of volatility. If you would invest 300.00 in Investcorp Credit Management on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Investcorp Credit Management or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Granite Real Estate vs. Investcorp Credit Management
Performance |
| Timeline |
| Granite Real Estate |
| Investcorp Credit |
Granite Real and Investcorp Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Real and Investcorp Credit
The main advantage of trading using opposite Granite Real and Investcorp Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Real position performs unexpectedly, Investcorp Credit 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 Investcorp Credit will offset losses from the drop in Investcorp Credit's long position.| Granite Real vs. Public Storage | Granite Real vs. Public Storage | Granite Real vs. Public Storage | Granite Real vs. Public Storage |
| Investcorp Credit vs. Presidio Property Trust | Investcorp Credit vs. Great Elm Capital | Investcorp Credit vs. Portman Ridge Finance | Investcorp Credit vs. OFS Capital Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |