Correlation Between Rivian Automotive and Grand City
Can any of the company-specific risk be diversified away by investing in both Rivian Automotive and Grand City 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 Rivian Automotive and Grand City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rivian Automotive and Grand City Properties, you can compare the effects of market volatilities on Rivian Automotive and Grand City 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 Rivian Automotive with a short position of Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rivian Automotive and Grand City.
Diversification Opportunities for Rivian Automotive and Grand City
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rivian and Grand is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rivian Automotive and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties and Rivian Automotive 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 Rivian Automotive are associated (or correlated) with Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Rivian Automotive i.e., Rivian Automotive and Grand City go up and down completely randomly.
Pair Corralation between Rivian Automotive and Grand City
Given the investment horizon of 90 days Rivian Automotive is expected to generate 1.51 times less return on investment than Grand City. In addition to that, Rivian Automotive is 1.55 times more volatile than Grand City Properties. It trades about 0.01 of its total potential returns per unit of risk. Grand City Properties is currently generating about 0.03 per unit of volatility. If you would invest 938.00 in Grand City Properties on September 19, 2024 and sell it today you would earn a total of 271.00 from holding Grand City Properties or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Rivian Automotive vs. Grand City Properties
Performance |
| Timeline |
| Rivian Automotive |
| Grand City Properties |
Rivian Automotive and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rivian Automotive and Grand City
The main advantage of trading using opposite Rivian Automotive and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rivian Automotive position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| Rivian Automotive vs. Nio Class A | Rivian Automotive vs. Xpeng Inc | Rivian Automotive vs. Mullen Automotive | Rivian Automotive vs. Tesla Inc |
| Grand City vs. J W Mays | Grand City vs. Frp Holdings Ord | Grand City vs. Maui Land Pineapple | Grand City vs. Fathom Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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