Correlation Between Flexible Solutions and Graphjet Technology

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

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

Diversification Opportunities for Flexible Solutions and Graphjet Technology

-0.18

Correlation Coefficient

Flexible Solutions  Graphjet Technology

Good diversification

The 3 months correlation between Flexible and Graphjet is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Flexible Solutions Internation and Graphjet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphjet Technology and Flexible Solutions 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 Flexible Solutions International 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 Flexible Solutions i.e., Flexible Solutions and Graphjet Technology go up and down completely randomly.

Pair Corralation between Flexible Solutions and Graphjet Technology

Considering the 90-day investment horizon Flexible Solutions International is expected to generate 0.41 times more return on investment than Graphjet Technology. However, Flexible Solutions International is 2.45 times less risky than Graphjet Technology. It trades about 0.2 of its potential returns per unit of risk. Graphjet Technology is currently generating about 0.0 per unit of risk. If you would invest  425.00  in Flexible Solutions International on May 19, 2025 and sell it today you would earn a total of  325.00  from holding Flexible Solutions International or generate 76.47% return on investment over 90 days.

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

Flexible Solutions Internation  vs.  Graphjet Technology

Flexible Solutions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Flexible Solutions International are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Flexible Solutions demonstrated 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 fairly strong basic indicators, Graphjet Technology is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Flexible Solutions and Graphjet Technology

The main advantage of trading using opposite Flexible Solutions and Graphjet Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexible Solutions 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 Flexible Solutions International 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.