Correlation Between Space-Communication and Graphjet Technology

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

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

Diversification Opportunities for Space-Communication and Graphjet Technology

0.0

Correlation Coefficient

Space-Communication  Graphjet Technology

Pay attention - limited upside

The 3 months correlation between Space-Communication and Graphjet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Space Communication and Graphjet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphjet Technology and Space-Communication 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 Space Communication 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 Space-Communication i.e., Space-Communication and Graphjet Technology go up and down completely randomly.

Pair Corralation between Space-Communication and Graphjet Technology

If you would invest  11.00  in Graphjet Technology on May 2, 2025 and sell it today you would earn a total of  0.00  from holding Graphjet Technology or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Space Communication  vs.  Graphjet Technology

Space Communication

Risk-Adjusted Performance

Very Weak

Over the last 90 days Space Communication has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Space-Communication is not utilizing all of its potentials. The new stock price disturbance, may contribute to mid-run losses for the stockholders.

Graphjet Technology

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Graphjet Technology are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, Graphjet Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Space-Communication and Graphjet Technology

The main advantage of trading using opposite Space-Communication and Graphjet Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Space-Communication 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 Space Communication 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.