Correlation Between Cornerstone Strategic and Graphjet Technology

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

By analyzing existing cross correlation between Cornerstone Strategic Value and Graphjet Technology, you can compare the effects of market volatilities on Cornerstone Strategic and Graphjet Technology 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 Cornerstone Strategic with a short position of Graphjet Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and Graphjet Technology.

Diversification Opportunities for Cornerstone Strategic and Graphjet Technology

-0.53

Correlation Coefficient

Cornerstone Strategic  Graphjet Technology

Excellent diversification

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

Pair Corralation between Cornerstone Strategic and Graphjet Technology

Considering the 90-day investment horizon Cornerstone Strategic Value is expected to generate 0.06 times more return on investment than Graphjet Technology. However, Cornerstone Strategic Value is 17.53 times less risky than Graphjet Technology. It trades about 0.32 of its potential returns per unit of risk. Graphjet Technology is currently generating about -0.01 per unit of risk. If you would invest  699.00  in Cornerstone Strategic Value on May 21, 2025 and sell it today you would earn a total of  107.00  from holding Cornerstone Strategic Value or generate 15.31% return on investment over 90 days.

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

Cornerstone Strategic Value  vs.  Graphjet Technology

Cornerstone Strategic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cornerstone Strategic Value are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak essential indicators, Cornerstone Strategic displayed solid returns over the last few months and may actually be approaching a breakup point.

Graphjet Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Graphjet Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Cornerstone Strategic and Graphjet Technology

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

The idea behind Cornerstone Strategic Value and Graphjet Technology 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.