Correlation Between Jianzhi Education and GrafTech International

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

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

Diversification Opportunities for Jianzhi Education and GrafTech International

-0.78

Correlation Coefficient

Jianzhi Education  GrafTech International

Pay attention - limited upside

The 3 months correlation between Jianzhi and GrafTech is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jianzhi Education Technology and GrafTech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrafTech International and Jianzhi Education 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 Jianzhi Education Technology are associated (or correlated) with GrafTech International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrafTech International has no effect on the direction of Jianzhi Education i.e., Jianzhi Education and GrafTech International go up and down completely randomly.

Pair Corralation between Jianzhi Education and GrafTech International

Allowing for the 90-day total investment horizon Jianzhi Education Technology is expected to under-perform the GrafTech International. But the stock apears to be less risky and, when comparing its historical volatility, Jianzhi Education Technology is 1.04 times less risky than GrafTech International. The stock trades about -0.26 of its potential returns per unit of risk. The GrafTech International is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  60.00  in GrafTech International on April 29, 2025 and sell it today you would earn a total of  104.00  from holding GrafTech International or generate 173.33% return on investment over 90 days.

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

Jianzhi Education Technology  vs.  GrafTech International

Jianzhi Education

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jianzhi Education Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

GrafTech International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GrafTech International are ranked lower than 18 (%) 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.

Pair Trading with Jianzhi Education and GrafTech International

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

The idea behind Jianzhi Education Technology and GrafTech International 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.