Correlation Between Granite Construction and 437076CK6
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By analyzing existing cross correlation between Granite Construction Incorporated and HD 275 15 SEP 51, you can compare the effects of market volatilities on Granite Construction and 437076CK6 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 437076CK6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and 437076CK6.
Diversification Opportunities for Granite Construction and 437076CK6
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Granite and 437076CK6 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction Incorpora and HD 275 15 SEP 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HD 275 15 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 437076CK6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HD 275 15 has no effect on the direction of Granite Construction i.e., Granite Construction and 437076CK6 go up and down completely randomly.
Pair Corralation between Granite Construction and 437076CK6
Considering the 90-day investment horizon Granite Construction Incorporated is expected to generate 1.11 times more return on investment than 437076CK6. However, Granite Construction is 1.11 times more volatile than HD 275 15 SEP 51. It trades about 0.15 of its potential returns per unit of risk. HD 275 15 SEP 51 is currently generating about 0.01 per unit of risk. If you would invest 3,807 in Granite Construction Incorporated on August 27, 2024 and sell it today you would earn a total of 6,122 from holding Granite Construction Incorporated or generate 160.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.72% |
| Values | Daily Returns |
Granite Construction Incorpora vs. HD 275 15 SEP 51
Performance |
| Timeline |
| Granite Construction |
| HD 275 15 |
Granite Construction and 437076CK6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and 437076CK6
The main advantage of trading using opposite Granite Construction and 437076CK6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, 437076CK6 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 437076CK6 will offset losses from the drop in 437076CK6's long position.| Granite Construction vs. EMCOR Group | Granite Construction vs. Comfort Systems USA | Granite Construction vs. Primoris Services | Granite Construction vs. Construction Partners |
| 437076CK6 vs. Copa Holdings SA | 437076CK6 vs. Aegean Airlines SA | 437076CK6 vs. Pearson PLC ADR | 437076CK6 vs. Nok Airlines Public |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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