Correlation Between Graphene Solar and Canaf Investments
Can any of the company-specific risk be diversified away by investing in both Graphene Solar and Canaf Investments 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 Graphene Solar and Canaf Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphene Solar Technologies and Canaf Investments, you can compare the effects of market volatilities on Graphene Solar and Canaf Investments 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 Graphene Solar with a short position of Canaf Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphene Solar and Canaf Investments.
Diversification Opportunities for Graphene Solar and Canaf Investments
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Graphene and Canaf is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Graphene Solar Technologies and Canaf Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaf Investments and Graphene Solar 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 Graphene Solar Technologies are associated (or correlated) with Canaf Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaf Investments has no effect on the direction of Graphene Solar i.e., Graphene Solar and Canaf Investments go up and down completely randomly.
Pair Corralation between Graphene Solar and Canaf Investments
Given the investment horizon of 90 days Graphene Solar Technologies is expected to generate 12.78 times more return on investment than Canaf Investments. However, Graphene Solar is 12.78 times more volatile than Canaf Investments. It trades about 0.1 of its potential returns per unit of risk. Canaf Investments is currently generating about 0.04 per unit of risk. If you would invest 13.00 in Graphene Solar Technologies on February 1, 2024 and sell it today you would lose (12.40) from holding Graphene Solar Technologies or give up 95.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Graphene Solar Technologies vs. Canaf Investments
Performance |
Timeline |
Graphene Solar Techn |
Canaf Investments |
Graphene Solar and Canaf Investments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Graphene Solar and Canaf Investments
The main advantage of trading using opposite Graphene Solar and Canaf Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphene Solar position performs unexpectedly, Canaf Investments 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 Canaf Investments will offset losses from the drop in Canaf Investments' long position.Graphene Solar vs. Anhui Conch Cement | Graphene Solar vs. Asahi Kaisei Corp | Graphene Solar vs. Alumina Limited | Graphene Solar vs. HUMANA INC |
Canaf Investments vs. Corsa Coal Corp | Canaf Investments vs. Alpha Metallurgical Resources | Canaf Investments vs. Arch Resources | Canaf Investments vs. SNDL Inc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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