Correlation Between GrafTech International and Adamas One

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

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

Diversification Opportunities for GrafTech International and Adamas One

0.0

Correlation Coefficient

GrafTech International  Adamas One

Pay attention - limited upside

The 3 months correlation between GrafTech and Adamas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GrafTech International and Adamas One Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adamas One Corp and GrafTech International 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 GrafTech International are associated (or correlated) with Adamas One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adamas One Corp has no effect on the direction of GrafTech International i.e., GrafTech International and Adamas One go up and down completely randomly.

Pair Corralation between GrafTech International and Adamas One

If you would invest  59.00  in GrafTech International on May 3, 2025 and sell it today you would earn a total of  69.00  from holding GrafTech International or generate 116.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GrafTech International  vs.  Adamas One Corp

GrafTech International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GrafTech International are ranked lower than 15 (%) 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.

Adamas One Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adamas One Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Adamas One is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with GrafTech International and Adamas One

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

The idea behind GrafTech International and Adamas One Corp 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 Anywhere module to track or share privately all of your investments from the convenience of any device.