Correlation Between Granite Construction and 00108WAF7
Specify exactly 2 symbols:
By analyzing existing cross correlation between Granite Construction Incorporated and AEP TEX INC, you can compare the effects of market volatilities on Granite Construction and 00108WAF7 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 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and 00108WAF7.
Diversification Opportunities for Granite Construction and 00108WAF7
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Granite and 00108WAF7 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction Incorpora and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC 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 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of Granite Construction i.e., Granite Construction and 00108WAF7 go up and down completely randomly.
Pair Corralation between Granite Construction and 00108WAF7
Considering the 90-day investment horizon Granite Construction is expected to generate 26.73 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, Granite Construction Incorporated is 70.63 times less risky than 00108WAF7. It trades about 0.25 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,076 in AEP TEX INC on August 24, 2024 and sell it today you would earn a total of 13.00 from holding AEP TEX INC or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.2% |
| Values | Daily Returns |
Granite Construction Incorpora vs. AEP TEX INC
Performance |
| Timeline |
| Granite Construction |
| AEP TEX INC |
Granite Construction and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and 00108WAF7
The main advantage of trading using opposite Granite Construction and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| Granite Construction vs. EMCOR Group | Granite Construction vs. Comfort Systems USA | Granite Construction vs. Primoris Services | Granite Construction vs. Construction Partners |
| 00108WAF7 vs. Philip Morris International | 00108WAF7 vs. Compania Cervecerias Unidas | 00108WAF7 vs. Diageo PLC ADR | 00108WAF7 vs. Cumberland Pharmaceuticals |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |