Correlation Between Applied Graphene and Crown Electrokinetics
Can any of the company-specific risk be diversified away by investing in both Applied Graphene and Crown Electrokinetics 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 Applied Graphene and Crown Electrokinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Graphene Materials and Crown Electrokinetics Corp, you can compare the effects of market volatilities on Applied Graphene and Crown Electrokinetics 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 Applied Graphene with a short position of Crown Electrokinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Graphene and Crown Electrokinetics.
Diversification Opportunities for Applied Graphene and Crown Electrokinetics
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Applied and Crown is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Applied Graphene Materials and Crown Electrokinetics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Electrokinetics and Applied Graphene 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 Applied Graphene Materials are associated (or correlated) with Crown Electrokinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Electrokinetics has no effect on the direction of Applied Graphene i.e., Applied Graphene and Crown Electrokinetics go up and down completely randomly.
Pair Corralation between Applied Graphene and Crown Electrokinetics
If you would invest 0.01 in Applied Graphene Materials on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Applied Graphene Materials or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Applied Graphene Materials vs. Crown Electrokinetics Corp
Performance |
| Timeline |
| Applied Graphene Mat |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Crown Electrokinetics |
Applied Graphene and Crown Electrokinetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Graphene and Crown Electrokinetics
The main advantage of trading using opposite Applied Graphene and Crown Electrokinetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Graphene position performs unexpectedly, Crown Electrokinetics 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 Crown Electrokinetics will offset losses from the drop in Crown Electrokinetics' long position.| Applied Graphene vs. First Graphene | Applied Graphene vs. Haydale Graphene Industries | Applied Graphene vs. G6 Materials Corp | Applied Graphene vs. Versarien plc |
| Crown Electrokinetics vs. Coroware | Crown Electrokinetics vs. Loop Industries | Crown Electrokinetics vs. Hudson Technologies | Crown Electrokinetics vs. General Environmental Management |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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