Correlation Between Granite Construction and ANTHEM
Specify exactly 2 symbols:
By analyzing existing cross correlation between Granite Construction Incorporated and ANTHEM INC 4101, you can compare the effects of market volatilities on Granite Construction and ANTHEM 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 ANTHEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and ANTHEM.
Diversification Opportunities for Granite Construction and ANTHEM
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Granite and ANTHEM is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction Incorpora and ANTHEM INC 4101 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTHEM INC 4101 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 ANTHEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTHEM INC 4101 has no effect on the direction of Granite Construction i.e., Granite Construction and ANTHEM go up and down completely randomly.
Pair Corralation between Granite Construction and ANTHEM
Considering the 90-day investment horizon Granite Construction Incorporated is expected to generate 7.92 times more return on investment than ANTHEM. However, Granite Construction is 7.92 times more volatile than ANTHEM INC 4101. It trades about 0.6 of its potential returns per unit of risk. ANTHEM INC 4101 is currently generating about -0.11 per unit of risk. If you would invest 8,218 in Granite Construction Incorporated on August 28, 2024 and sell it today you would earn a total of 1,695 from holding Granite Construction Incorporated or generate 20.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Granite Construction Incorpora vs. ANTHEM INC 4101
Performance |
| Timeline |
| Granite Construction |
| ANTHEM INC 4101 |
Granite Construction and ANTHEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and ANTHEM
The main advantage of trading using opposite Granite Construction and ANTHEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, ANTHEM 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 ANTHEM will offset losses from the drop in ANTHEM's long position.| Granite Construction vs. EMCOR Group | Granite Construction vs. Comfort Systems USA | Granite Construction vs. Primoris Services | Granite Construction vs. Construction Partners |
| ANTHEM vs. AEP TEX INC | ANTHEM vs. US BANK NATIONAL | ANTHEM vs. Eat Beyond Global | ANTHEM vs. Charles Schwab Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |