Correlation Between Aehr Test and Graphene Solar
Can any of the company-specific risk be diversified away by investing in both Aehr Test and Graphene Solar 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 Aehr Test and Graphene Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and Graphene Solar Technologies, you can compare the effects of market volatilities on Aehr Test and Graphene Solar 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 Aehr Test with a short position of Graphene Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and Graphene Solar.
Diversification Opportunities for Aehr Test and Graphene Solar
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aehr and Graphene is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and Graphene Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphene Solar Techn and Aehr Test 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 Aehr Test Systems are associated (or correlated) with Graphene Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphene Solar Techn has no effect on the direction of Aehr Test i.e., Aehr Test and Graphene Solar go up and down completely randomly.
Pair Corralation between Aehr Test and Graphene Solar
Given the investment horizon of 90 days Aehr Test is expected to generate 197.58 times less return on investment than Graphene Solar. But when comparing it to its historical volatility, Aehr Test Systems is 21.95 times less risky than Graphene Solar. It trades about 0.01 of its potential returns per unit of risk. Graphene Solar Technologies is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1.55 in Graphene Solar Technologies on September 12, 2024 and sell it today you would lose (0.15) from holding Graphene Solar Technologies or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Aehr Test Systems vs. Graphene Solar Technologies
Performance |
| Timeline |
| Aehr Test Systems |
| Graphene Solar Techn |
Aehr Test and Graphene Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and Graphene Solar
The main advantage of trading using opposite Aehr Test and Graphene Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, Graphene Solar 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 Graphene Solar will offset losses from the drop in Graphene Solar's long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| Graphene Solar vs. Photronics | Graphene Solar vs. Axcelis Technologies | Graphene Solar vs. Aehr Test Systems | Graphene Solar vs. Teradyne |
Check out your portfolio center.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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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