Correlation Between Granite Falls and Bank of Communications
Can any of the company-specific risk be diversified away by investing in both Granite Falls and Bank of Communications 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 Granite Falls and Bank of Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Falls Energy and Bank of Communications, you can compare the effects of market volatilities on Granite Falls and Bank of Communications 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 Falls with a short position of Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Falls and Bank of Communications.
Diversification Opportunities for Granite Falls and Bank of Communications
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Granite and Bank is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Granite Falls Energy and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications and Granite Falls 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 Falls Energy are associated (or correlated) with Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Granite Falls i.e., Granite Falls and Bank of Communications go up and down completely randomly.
Pair Corralation between Granite Falls and Bank of Communications
If you would invest 1,622 in Bank of Communications on January 30, 2024 and sell it today you would earn a total of 63.00 from holding Bank of Communications or generate 3.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Granite Falls Energy vs. Bank of Communications
Performance |
Timeline |
Granite Falls Energy |
Bank of Communications |
Granite Falls and Bank of Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Granite Falls and Bank of Communications
The main advantage of trading using opposite Granite Falls and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Falls position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.Granite Falls vs. Hawkins | Granite Falls vs. Vera Bradley | Granite Falls vs. Gulf Resources | Granite Falls vs. Avient Corp |
Bank of Communications vs. Bank of America | Bank of Communications vs. Mitsubishi UFJ Financial | Bank of Communications vs. Natwest Group PLC |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
CEOs Directory Screen CEOs from public companies around the world | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |