Correlation Between Granite Falls and Black Knight
Can any of the company-specific risk be diversified away by investing in both Granite Falls and Black Knight 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 Black Knight 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 Black Knight, you can compare the effects of market volatilities on Granite Falls and Black Knight 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 Black Knight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite Falls and Black Knight.
Diversification Opportunities for Granite Falls and Black Knight
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Granite and Black is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Granite Falls Energy and Black Knight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Knight 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 Black Knight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Knight has no effect on the direction of Granite Falls i.e., Granite Falls and Black Knight go up and down completely randomly.
Pair Corralation between Granite Falls and Black Knight
If you would invest 7,576 in Black Knight on February 4, 2024 and sell it today you would earn a total of 0.00 from holding Black Knight or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Granite Falls Energy vs. Black Knight
Performance |
Timeline |
Granite Falls Energy |
Black Knight |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Granite Falls and Black Knight Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Granite Falls and Black Knight
The main advantage of trading using opposite Granite Falls and Black Knight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite Falls position performs unexpectedly, Black Knight 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 Black Knight will offset losses from the drop in Black Knight's long position.Granite Falls vs. Petroleo Brasileiro Petrobras | Granite Falls vs. Equinor ASA ADR | Granite Falls vs. Eni SpA ADR | Granite Falls vs. YPF Sociedad Anonima |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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