Correlation Between California Nanotechnologies and Graphene Manufacturing

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

By analyzing existing cross correlation between California Nanotechnologies Corp and Graphene Manufacturing Group, you can compare the effects of market volatilities on California Nanotechnologies and Graphene Manufacturing 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 California Nanotechnologies with a short position of Graphene Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Nanotechnologies and Graphene Manufacturing.

Diversification Opportunities for California Nanotechnologies and Graphene Manufacturing

-0.62

Correlation Coefficient

California Nanotechnologies  Graphene Manufacturing

Excellent diversification

The 3 months correlation between California and Graphene is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding California Nanotechnologies Co and Graphene Manufacturing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphene Manufacturing and California Nanotechnologies 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 California Nanotechnologies Corp are associated (or correlated) with Graphene Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphene Manufacturing has no effect on the direction of California Nanotechnologies i.e., California Nanotechnologies and Graphene Manufacturing go up and down completely randomly.

Pair Corralation between California Nanotechnologies and Graphene Manufacturing

Assuming the 90 days horizon California Nanotechnologies Corp is expected to under-perform the Graphene Manufacturing. In addition to that, California Nanotechnologies is 1.19 times more volatile than Graphene Manufacturing Group. It trades about -0.02 of its total potential returns per unit of risk. Graphene Manufacturing Group is currently generating about 0.11 per unit of volatility. If you would invest  49.00  in Graphene Manufacturing Group on May 7, 2025 and sell it today you would earn a total of  15.00  from holding Graphene Manufacturing Group or generate 30.61% return on investment over 90 days.

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

California Nanotechnologies Co  vs.  Graphene Manufacturing Group

California Nanotechnologies

Risk-Adjusted Performance

Weakest

Over the last 90 days California Nanotechnologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Graphene Manufacturing

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Graphene Manufacturing Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak primary indicators, Graphene Manufacturing reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with California Nanotechnologies and Graphene Manufacturing

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

The idea behind California Nanotechnologies Corp and Graphene Manufacturing Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.