Correlation Between Graphjet Technology and Solid Power

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

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

Diversification Opportunities for Graphjet Technology and Solid Power

-0.35

Correlation Coefficient

Graphjet Technology  Solid Power

Very good diversification

The 3 months correlation between Graphjet and Solid is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Graphjet Technology and Solid Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Power and Graphjet Technology 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 Graphjet Technology are associated (or correlated) with Solid Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Power has no effect on the direction of Graphjet Technology i.e., Graphjet Technology and Solid Power go up and down completely randomly.

Pair Corralation between Graphjet Technology and Solid Power

Considering the 90-day investment horizon Graphjet Technology is expected to generate 1.65 times less return on investment than Solid Power. In addition to that, Graphjet Technology is 2.18 times more volatile than Solid Power. It trades about 0.1 of its total potential returns per unit of risk. Solid Power is currently generating about 0.37 per unit of volatility. If you would invest  111.00  in Solid Power on April 29, 2025 and sell it today you would earn a total of  320.00  from holding Solid Power or generate 288.29% return on investment over 90 days.

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

Graphjet Technology  vs.  Solid Power

Graphjet Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Graphjet Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Graphjet Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Solid Power

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Solid Power are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain fundamental indicators, Solid Power reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Graphjet Technology and Solid Power

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

The idea behind Graphjet Technology and Solid Power 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.