Correlation Between Granite Construction and 92826CAM4
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By analyzing existing cross correlation between Granite Construction Incorporated and VISA INC, you can compare the effects of market volatilities on Granite Construction and 92826CAM4 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 92826CAM4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Construction and 92826CAM4.
Diversification Opportunities for Granite Construction and 92826CAM4
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Granite and 92826CAM4 is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Granite Construction Incorpora and VISA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 92826CAM4 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 92826CAM4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 92826CAM4 has no effect on the direction of Granite Construction i.e., Granite Construction and 92826CAM4 go up and down completely randomly.
Pair Corralation between Granite Construction and 92826CAM4
Considering the 90-day investment horizon Granite Construction Incorporated is expected to generate 1.4 times more return on investment than 92826CAM4. However, Granite Construction is 1.4 times more volatile than VISA INC. It trades about 0.6 of its potential returns per unit of risk. VISA INC is currently generating about -0.28 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Granite Construction Incorpora vs. VISA INC
Performance |
| Timeline |
| Granite Construction |
| 92826CAM4 |
Granite Construction and 92826CAM4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Construction and 92826CAM4
The main advantage of trading using opposite Granite Construction and 92826CAM4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Construction position performs unexpectedly, 92826CAM4 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 92826CAM4 will offset losses from the drop in 92826CAM4's long position.| Granite Construction vs. EMCOR Group | Granite Construction vs. Comfort Systems USA | Granite Construction vs. Primoris Services | Granite Construction vs. Construction Partners |
| 92826CAM4 vs. AEP TEX INC | 92826CAM4 vs. US BANK NATIONAL | 92826CAM4 vs. Eat Beyond Global | 92826CAM4 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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