Correlation Between Oxurion NV and Granite Construction
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and Granite Construction 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 Oxurion NV and Granite Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and Granite Construction, you can compare the effects of market volatilities on Oxurion NV and Granite Construction 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 Oxurion NV with a short position of Granite Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Granite Construction.
Diversification Opportunities for Oxurion NV and Granite Construction
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxurion and Granite is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Granite Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Construction and Oxurion NV 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 Oxurion NV are associated (or correlated) with Granite Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Construction has no effect on the direction of Oxurion NV i.e., Oxurion NV and Granite Construction go up and down completely randomly.
Pair Corralation between Oxurion NV and Granite Construction
Assuming the 90 days horizon Oxurion NV is expected to under-perform the Granite Construction. In addition to that, Oxurion NV is 5.12 times more volatile than Granite Construction. It trades about -0.05 of its total potential returns per unit of risk. Granite Construction is currently generating about 0.34 per unit of volatility. If you would invest 6,937 in Granite Construction on August 28, 2024 and sell it today you would earn a total of 2,513 from holding Granite Construction or generate 36.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 61.9% |
| Values | Daily Returns |
Oxurion NV vs. Granite Construction
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Granite Construction |
Oxurion NV and Granite Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and Granite Construction
The main advantage of trading using opposite Oxurion NV and Granite Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, Granite Construction 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 Granite Construction will offset losses from the drop in Granite Construction's long position.| Oxurion NV vs. KIMBALL ELECTRONICS | Oxurion NV vs. Sixt Leasing SE | Oxurion NV vs. SOFI TECHNOLOGIES | Oxurion NV vs. Nucletron Electronic Aktiengesellschaft |
| Granite Construction vs. Flutter Entertainment PLC | Granite Construction vs. Townsquare Media | Granite Construction vs. Hollywood Bowl Group | Granite Construction vs. Caseys General Stores |
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 Stocks Directory module to find actively traded stocks across global markets.
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