Correlation Between Granite Construction and Regenx Tech
Can any of the company-specific risk be diversified away by investing in both Granite Construction and Regenx Tech 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 Regenx Tech 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 Regenx Tech Corp, you can compare the effects of market volatilities on Granite Construction and Regenx Tech 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 Regenx Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and Regenx Tech.
Diversification Opportunities for Granite Construction and Regenx Tech
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Granite and Regenx is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction Incorpora and Regenx Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regenx Tech 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 Regenx Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regenx Tech Corp has no effect on the direction of Granite Construction i.e., Granite Construction and Regenx Tech go up and down completely randomly.
Pair Corralation between Granite Construction and Regenx Tech
Considering the 90-day investment horizon Granite Construction Incorporated is expected to generate 0.16 times more return on investment than Regenx Tech. However, Granite Construction Incorporated is 6.3 times less risky than Regenx Tech. It trades about 0.12 of its potential returns per unit of risk. Regenx Tech Corp is currently generating about 0.01 per unit of risk. If you would invest 3,566 in Granite Construction Incorporated on August 29, 2024 and sell it today you would earn a total of 6,303 from holding Granite Construction Incorporated or generate 176.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Granite Construction Incorpora vs. Regenx Tech Corp
Performance |
| Timeline |
| Granite Construction |
| Regenx Tech Corp |
Granite Construction and Regenx Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and Regenx Tech
The main advantage of trading using opposite Granite Construction and Regenx Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, Regenx Tech 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 Regenx Tech will offset losses from the drop in Regenx Tech's long position.| Granite Construction vs. EMCOR Group | Granite Construction vs. Comfort Systems USA | Granite Construction vs. Primoris Services | Granite Construction vs. Construction Partners |
| Regenx Tech vs. GoGold Resources | Regenx Tech vs. P2 Gold | Regenx Tech vs. Max Resource Corp | Regenx Tech vs. Pacific Ridge Exploration |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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