Correlation Between GREENX METALS and Granite Construction
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and Granite Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Granite Construction, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of Granite Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Granite Construction.
Diversification Opportunities for GREENX METALS and Granite Construction
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GREENX and Granite is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Granite Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Construction and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and Granite Construction go up and down completely randomly.
Pair Corralation between GREENX METALS and Granite Construction
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 2.88 times more return on investment than Granite Construction. However, GREENX METALS is 2.88 times more volatile than Granite Construction. It trades about 0.09 of its potential returns per unit of risk. Granite Construction is currently generating about 0.01 per unit of risk. If you would invest 41.00 in GREENX METALS LTD on September 4, 2025 and sell it today you would earn a total of 7.00 from holding GREENX METALS LTD or generate 17.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Granite Construction
Performance |
| Timeline |
| GREENX METALS LTD |
| Granite Construction |
GREENX METALS and Granite Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Granite Construction
The main advantage of trading using opposite GREENX METALS and Granite Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. CORONGLRES CDIS101 | GREENX METALS vs. MONGOLIAN MINING CRPREGS | GREENX METALS vs. Ecora Resources PLC | GREENX METALS vs. Superior Plus Corp |
| Granite Construction vs. Penta Ocean Construction Co | Granite Construction vs. REGAL ASIAN INVESTMENTS | Granite Construction vs. Apollo Investment Corp | Granite Construction vs. MGIC INVESTMENT |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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