Correlation Between Grand Canyon and Innoviva

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

By analyzing existing cross correlation between Grand Canyon Education and Innoviva, you can compare the effects of market volatilities on Grand Canyon and Innoviva 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 Grand Canyon with a short position of Innoviva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Canyon and Innoviva.

Diversification Opportunities for Grand Canyon and Innoviva

0.14

Correlation Coefficient

Grand Canyon  Innoviva

Average diversification

The 3 months correlation between Grand and Innoviva is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canyon Education and Innoviva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innoviva and Grand Canyon 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 Grand Canyon Education are associated (or correlated) with Innoviva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innoviva has no effect on the direction of Grand Canyon i.e., Grand Canyon and Innoviva go up and down completely randomly.

Pair Corralation between Grand Canyon and Innoviva

Given the investment horizon of 90 days Grand Canyon Education is expected to generate 1.33 times more return on investment than Innoviva. However, Grand Canyon is 1.33 times more volatile than Innoviva. It trades about 0.06 of its potential returns per unit of risk. Innoviva is currently generating about 0.06 per unit of risk. If you would invest  10,839  in Grand Canyon Education on May 7, 2025 and sell it today you would earn a total of  6,207  from holding Grand Canyon Education or generate 57.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Grand Canyon Education  vs.  Innoviva

Grand Canyon Education

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grand Canyon Education has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Innoviva

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Grand Canyon and Innoviva

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

The idea behind Grand Canyon Education and Innoviva 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.