Correlation Between Granite Construction and Bim Birlesik
Can any of the company-specific risk be diversified away by investing in both Granite Construction and Bim Birlesik 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 Bim Birlesik 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 Bim Birlesik Magazalar, you can compare the effects of market volatilities on Granite Construction and Bim Birlesik 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 Bim Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and Bim Birlesik.
Diversification Opportunities for Granite Construction and Bim Birlesik
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Granite and Bim is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction Incorpora and Bim Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bim Birlesik Magazalar 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 Bim Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bim Birlesik Magazalar has no effect on the direction of Granite Construction i.e., Granite Construction and Bim Birlesik go up and down completely randomly.
Pair Corralation between Granite Construction and Bim Birlesik
Considering the 90-day investment horizon Granite Construction is expected to generate 2.21 times less return on investment than Bim Birlesik. But when comparing it to its historical volatility, Granite Construction Incorporated is 2.62 times less risky than Bim Birlesik. It trades about 0.13 of its potential returns per unit of risk. Bim Birlesik Magazalar is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 123.00 in Bim Birlesik Magazalar on August 27, 2024 and sell it today you would earn a total of 857.00 from holding Bim Birlesik Magazalar or generate 696.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Granite Construction Incorpora vs. Bim Birlesik Magazalar
Performance |
| Timeline |
| Granite Construction |
| Bim Birlesik Magazalar |
Granite Construction and Bim Birlesik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and Bim Birlesik
The main advantage of trading using opposite Granite Construction and Bim Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, Bim Birlesik 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 Bim Birlesik will offset losses from the drop in Bim Birlesik's long position.| Granite Construction vs. EMCOR Group | Granite Construction vs. Comfort Systems USA | Granite Construction vs. Primoris Services | Granite Construction vs. Construction Partners |
| Bim Birlesik vs. Itron Inc | Bim Birlesik vs. Omega Healthcare Investors | Bim Birlesik vs. Blacksky Technology | Bim Birlesik vs. Red Cat Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |