Correlation Between Granite Construction and Amincor
Can any of the company-specific risk be diversified away by investing in both Granite Construction and Amincor 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 Amincor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Construction Incorporated and Amincor, you can compare the effects of market volatilities on Granite Construction and Amincor 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 Amincor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and Amincor.
Diversification Opportunities for Granite Construction and Amincor
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Granite and Amincor is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction Incorpora and Amincor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amincor 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 Incorporated are associated (or correlated) with Amincor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amincor has no effect on the direction of Granite Construction i.e., Granite Construction and Amincor go up and down completely randomly.
Pair Corralation between Granite Construction and Amincor
If you would invest 8,405 in Granite Construction Incorporated on September 1, 2024 and sell it today you would earn a total of 1,532 from holding Granite Construction Incorporated or generate 18.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Granite Construction Incorpora vs. Amincor
Performance |
| Timeline |
| Granite Construction |
| Amincor |
Granite Construction and Amincor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and Amincor
The main advantage of trading using opposite Granite Construction and Amincor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, Amincor 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 Amincor will offset losses from the drop in Amincor's long position.| Granite Construction vs. EMCOR Group | Granite Construction vs. Comfort Systems USA | Granite Construction vs. Primoris Services | Granite Construction vs. Construction Partners |
| Amincor vs. BAB Inc | Amincor vs. FitLife Brands, Common | Amincor vs. The A2 Milk | Amincor vs. Artisan Consumer Goods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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