Correlation Between Granite Real and DIRTT Environmental
Can any of the company-specific risk be diversified away by investing in both Granite Real and DIRTT Environmental 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 Real and DIRTT Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite Real Estate and DIRTT Environmental Solutions, you can compare the effects of market volatilities on Granite Real and DIRTT Environmental 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 Real with a short position of DIRTT Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Real and DIRTT Environmental.
Diversification Opportunities for Granite Real and DIRTT Environmental
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Granite and DIRTT is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Granite Real Estate and DIRTT Environmental Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIRTT Environmental and Granite Real 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 Real Estate are associated (or correlated) with DIRTT Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIRTT Environmental has no effect on the direction of Granite Real i.e., Granite Real and DIRTT Environmental go up and down completely randomly.
Pair Corralation between Granite Real and DIRTT Environmental
Assuming the 90 days trading horizon Granite Real is expected to generate 1.63 times less return on investment than DIRTT Environmental. But when comparing it to its historical volatility, Granite Real Estate is 2.7 times less risky than DIRTT Environmental. It trades about 0.14 of its potential returns per unit of risk. DIRTT Environmental Solutions is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 84.00 in DIRTT Environmental Solutions on October 9, 2025 and sell it today you would earn a total of 12.00 from holding DIRTT Environmental Solutions or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Granite Real Estate vs. DIRTT Environmental Solutions
Performance |
| Timeline |
| Granite Real Estate |
| DIRTT Environmental |
Granite Real and DIRTT Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite Real and DIRTT Environmental
The main advantage of trading using opposite Granite Real and DIRTT Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Real position performs unexpectedly, DIRTT Environmental 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 DIRTT Environmental will offset losses from the drop in DIRTT Environmental's long position.| Granite Real vs. Dream Industrial Real | Granite Real vs. Choice Properties Real | Granite Real vs. First Capital Real | Granite Real vs. RioCan Real Estate |
| DIRTT Environmental vs. Sparta Capital | DIRTT Environmental vs. iShares Canadian HYBrid | DIRTT Environmental vs. European Residential Real | DIRTT Environmental vs. Brookfield |
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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