Correlation Between First Graphene and ASP Isotopes

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

By analyzing existing cross correlation between First Graphene and ASP Isotopes Common, you can compare the effects of market volatilities on First Graphene and ASP Isotopes 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 First Graphene with a short position of ASP Isotopes. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Graphene and ASP Isotopes.

Diversification Opportunities for First Graphene and ASP Isotopes

-0.28

Correlation Coefficient

First Graphene  ASP Isotopes

Very good diversification

The 3 months correlation between First and ASP is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding First Graphene and ASP Isotopes Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASP Isotopes Common and First Graphene 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 First Graphene are associated (or correlated) with ASP Isotopes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASP Isotopes Common has no effect on the direction of First Graphene i.e., First Graphene and ASP Isotopes go up and down completely randomly.

Pair Corralation between First Graphene and ASP Isotopes

Assuming the 90 days horizon First Graphene is expected to generate 1.25 times less return on investment than ASP Isotopes. In addition to that, First Graphene is 2.1 times more volatile than ASP Isotopes Common. It trades about 0.04 of its total potential returns per unit of risk. ASP Isotopes Common is currently generating about 0.12 per unit of volatility. If you would invest  667.00  in ASP Isotopes Common on May 12, 2025 and sell it today you would earn a total of  265.00  from holding ASP Isotopes Common or generate 39.73% return on investment over 90 days.

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

First Graphene  vs.  ASP Isotopes Common

First Graphene

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in First Graphene are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, First Graphene reported solid returns over the last few months and may actually be approaching a breakup point.

ASP Isotopes Common

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ASP Isotopes Common are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, ASP Isotopes demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with First Graphene and ASP Isotopes

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

The idea behind First Graphene and ASP Isotopes Common 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 Transaction History module to view history of all your transactions and understand their impact on performance.