Correlation Between MUNRE and Graham Holdings

Can any of the company-specific risk be diversified away by investing in both MUNRE and Graham Holdings 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 MUNRE and Graham Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MUNRE 5875 23 MAY 42 and Graham Holdings Co, you can compare the effects of market volatilities on MUNRE and Graham Holdings 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 MUNRE with a short position of Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MUNRE and Graham Holdings.

Diversification Opportunities for MUNRE and Graham Holdings

0.0

Correlation Coefficient

MUNRE  Graham Holdings

Pay attention - limited upside

The 3 months correlation between MUNRE and Graham is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MUNRE 5875 23 MAY 42 and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings and MUNRE 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 MUNRE 5875 23 MAY 42 are associated (or correlated) with Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of MUNRE i.e., MUNRE and Graham Holdings go up and down completely randomly.

Pair Corralation between MUNRE and Graham Holdings

If you would invest  81,247  in Graham Holdings Co on October 9, 2024 and sell it today you would earn a total of  7,188  from holding Graham Holdings Co or generate 8.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

MUNRE 5875 23 MAY 42  vs.  Graham Holdings Co

MUNRE 5875 23

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MUNRE 5875 23 MAY 42 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MUNRE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Graham Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Graham Holdings Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical indicators, Graham Holdings may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with MUNRE and Graham Holdings

The main advantage of trading using opposite MUNRE and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MUNRE position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' long position.

The idea behind MUNRE 5875 23 MAY 42 and Graham Holdings Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.