Correlation Between Applied Graphene and Nano One
Can any of the company-specific risk be diversified away by investing in both Applied Graphene and Nano One 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 Nano One 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 Nano One Materials, you can compare the effects of market volatilities on Applied Graphene and Nano One 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 Nano One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Graphene and Nano One.
Diversification Opportunities for Applied Graphene and Nano One
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Applied and Nano is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Applied Graphene Materials and Nano One Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano One Materials 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 Nano One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano One Materials has no effect on the direction of Applied Graphene i.e., Applied Graphene and Nano One go up and down completely randomly.
Pair Corralation between Applied Graphene and Nano One
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 Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Applied Graphene Materials vs. Nano One Materials
Performance |
| Timeline |
| Applied Graphene Mat |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nano One Materials |
Applied Graphene and Nano One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Graphene and Nano One
The main advantage of trading using opposite Applied Graphene and Nano One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Graphene position performs unexpectedly, Nano One 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 Nano One will offset losses from the drop in Nano One'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 |
| Nano One vs. G6 Materials Corp | Nano One vs. Haydale Graphene Industries | Nano One vs. Orica Limited | Nano One vs. Johnson Matthey PLC |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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