Correlation Between Advent Technologies and GrafTech International

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

By analyzing existing cross correlation between Advent Technologies Holdings and GrafTech International, you can compare the effects of market volatilities on Advent Technologies and GrafTech International 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 Advent Technologies with a short position of GrafTech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and GrafTech International.

Diversification Opportunities for Advent Technologies and GrafTech International

-0.53

Correlation Coefficient

Advent Technologies  GrafTech International

Excellent diversification

The 3 months correlation between Advent and GrafTech is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and GrafTech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrafTech International and Advent Technologies 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 Advent Technologies Holdings are associated (or correlated) with GrafTech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrafTech International has no effect on the direction of Advent Technologies i.e., Advent Technologies and GrafTech International go up and down completely randomly.

Pair Corralation between Advent Technologies and GrafTech International

Considering the 90-day investment horizon Advent Technologies Holdings is expected to under-perform the GrafTech International. But the stock apears to be less risky and, when comparing its historical volatility, Advent Technologies Holdings is 1.32 times less risky than GrafTech International. The stock trades about -0.13 of its potential returns per unit of risk. The GrafTech International is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  71.00  in GrafTech International on May 8, 2025 and sell it today you would earn a total of  46.00  from holding GrafTech International or generate 64.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Advent Technologies Holdings  vs.  GrafTech International

Advent Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Advent Technologies Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

GrafTech International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GrafTech International are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, GrafTech International reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advent Technologies and GrafTech International

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

The idea behind Advent Technologies Holdings and GrafTech International 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.