Correlation Between Applied Graphene and Green Star
Can any of the company-specific risk be diversified away by investing in both Applied Graphene and Green Star 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 Green Star 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 Green Star Products, you can compare the effects of market volatilities on Applied Graphene and Green Star 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 Green Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Graphene and Green Star.
Diversification Opportunities for Applied Graphene and Green Star
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Applied and Green is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Applied Graphene Materials and Green Star Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Star Products 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 Green Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Star Products has no effect on the direction of Applied Graphene i.e., Applied Graphene and Green Star go up and down completely randomly.
Pair Corralation between Applied Graphene and Green Star
If you would invest 0.11 in Green Star Products on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Green Star Products or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Applied Graphene Materials vs. Green Star Products
Performance |
| Timeline |
| Applied Graphene Mat |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Green Star Products |
Applied Graphene and Green Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Graphene and Green Star
The main advantage of trading using opposite Applied Graphene and Green Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Graphene position performs unexpectedly, Green Star 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 Green Star will offset losses from the drop in Green Star's long position.| Applied Graphene vs. First Graphene | Applied Graphene vs. Haydale Graphene Industries | Applied Graphene vs. G6 Materials Corp | Applied Graphene vs. Versarien plc |
| Green Star vs. Akzo Nobel NV | Green Star vs. Avoca LLC | Green Star vs. Arkema SA ADR | Green Star vs. HUMANA INC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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