Correlation Between Graph and Aethir

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

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

Diversification Opportunities for Graph and Aethir

0.39

Correlation Coefficient

Graph  Aethir

Weak diversification

The 3 months correlation between Graph and Aethir is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding The Graph and Aethir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aethir and Graph 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 The Graph are associated (or correlated) with Aethir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aethir has no effect on the direction of Graph i.e., Graph and Aethir go up and down completely randomly.

Pair Corralation between Graph and Aethir

Assuming the 90 days trading horizon The Graph is expected to generate 0.7 times more return on investment than Aethir. However, The Graph is 1.42 times less risky than Aethir. It trades about -0.26 of its potential returns per unit of risk. Aethir is currently generating about -0.41 per unit of risk. If you would invest  8.21  in The Graph on August 6, 2025 and sell it today you would lose (2.47) from holding The Graph or give up 30.09% of portfolio value over 90 days.

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

The Graph  vs.  Aethir

Graph

Risk-Adjusted Performance

Weakest

Over the last 90 days The Graph has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's basic indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for The Graph shareholders.

Aethir

Risk-Adjusted Performance

Weakest

Over the last 90 days Aethir has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's technical indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Aethir shareholders.

Pair Trading with Graph and Aethir

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

The idea behind The Graph and Aethir 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.