Correlation Between Granite Construction and GameOn Entertainment
Can any of the company-specific risk be diversified away by investing in both Granite Construction and GameOn Entertainment 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 GameOn Entertainment 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 GameOn Entertainment Technologies, you can compare the effects of market volatilities on Granite Construction and GameOn Entertainment 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 GameOn Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and GameOn Entertainment.
Diversification Opportunities for Granite Construction and GameOn Entertainment
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Granite and GameOn is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction Incorpora and GameOn Entertainment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameOn Entertainment 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 GameOn Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameOn Entertainment has no effect on the direction of Granite Construction i.e., Granite Construction and GameOn Entertainment go up and down completely randomly.
Pair Corralation between Granite Construction and GameOn Entertainment
Considering the 90-day investment horizon Granite Construction Incorporated is expected to under-perform the GameOn Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Granite Construction Incorporated is 9.22 times less risky than GameOn Entertainment. The stock trades about -0.15 of its potential returns per unit of risk. The GameOn Entertainment Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.60 in GameOn Entertainment Technologies on November 18, 2024 and sell it today you would earn a total of 0.10 from holding GameOn Entertainment Technologies or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Granite Construction Incorpora vs. GameOn Entertainment Technolog
Performance |
| Timeline |
| Granite Construction |
| GameOn Entertainment |
Granite Construction and GameOn Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and GameOn Entertainment
The main advantage of trading using opposite Granite Construction and GameOn Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, GameOn Entertainment 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 GameOn Entertainment will offset losses from the drop in GameOn Entertainment's long position.| Granite Construction vs. EMCOR Group | Granite Construction vs. Comfort Systems USA | Granite Construction vs. Primoris Services | Granite Construction vs. Construction Partners |
| GameOn Entertainment vs. NEXON Co | GameOn Entertainment vs. i3 Interactive | GameOn Entertainment vs. Playstudios | GameOn Entertainment vs. Doubledown Interactive Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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