Correlation Between Granite Construction and Kodiak Copper
Can any of the company-specific risk be diversified away by investing in both Granite Construction and Kodiak Copper 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 Kodiak Copper 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 Kodiak Copper Corp, you can compare the effects of market volatilities on Granite Construction and Kodiak Copper 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 Kodiak Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and Kodiak Copper.
Diversification Opportunities for Granite Construction and Kodiak Copper
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Granite and Kodiak is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction Incorpora and Kodiak Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Copper Corp 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 Kodiak Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Copper Corp has no effect on the direction of Granite Construction i.e., Granite Construction and Kodiak Copper go up and down completely randomly.
Pair Corralation between Granite Construction and Kodiak Copper
Considering the 90-day investment horizon Granite Construction Incorporated is expected to generate 0.44 times more return on investment than Kodiak Copper. However, Granite Construction Incorporated is 2.3 times less risky than Kodiak Copper. It trades about 0.09 of its potential returns per unit of risk. Kodiak Copper Corp is currently generating about -0.01 per unit of risk. If you would invest 4,235 in Granite Construction Incorporated on November 19, 2024 and sell it today you would earn a total of 4,452 from holding Granite Construction Incorporated or generate 105.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Granite Construction Incorpora vs. Kodiak Copper Corp
Performance |
| Timeline |
| Granite Construction |
| Kodiak Copper Corp |
Granite Construction and Kodiak Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and Kodiak Copper
The main advantage of trading using opposite Granite Construction and Kodiak Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, Kodiak Copper 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 Kodiak Copper will offset losses from the drop in Kodiak Copper's long position.| Granite Construction vs. EMCOR Group | Granite Construction vs. Comfort Systems USA | Granite Construction vs. Primoris Services | Granite Construction vs. Construction Partners |
| Kodiak Copper vs. Silver Tiger Metals | Kodiak Copper vs. P2 Gold | Kodiak Copper vs. Integra Resources Corp | Kodiak Copper vs. SilverCrest Metals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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