Correlation Between Autosports and First Graphene
Can any of the company-specific risk be diversified away by investing in both Autosports and First Graphene 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 Autosports and First Graphene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autosports Group and First Graphene, you can compare the effects of market volatilities on Autosports and First Graphene 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 Autosports with a short position of First Graphene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autosports and First Graphene.
Diversification Opportunities for Autosports and First Graphene
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Autosports and First is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Autosports Group and First Graphene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Graphene and Autosports 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 Autosports Group are associated (or correlated) with First Graphene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Graphene has no effect on the direction of Autosports i.e., Autosports and First Graphene go up and down completely randomly.
Pair Corralation between Autosports and First Graphene
Assuming the 90 days trading horizon Autosports Group is expected to generate 0.3 times more return on investment than First Graphene. However, Autosports Group is 3.28 times less risky than First Graphene. It trades about -0.6 of its potential returns per unit of risk. First Graphene is currently generating about -0.31 per unit of risk. If you would invest 216.00 in Autosports Group on September 5, 2024 and sell it today you would lose (35.00) from holding Autosports Group or give up 16.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autosports Group vs. First Graphene
Performance |
| Timeline |
| Autosports Group |
| First Graphene |
Autosports and First Graphene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autosports and First Graphene
The main advantage of trading using opposite Autosports and First Graphene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autosports position performs unexpectedly, First Graphene 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 First Graphene will offset losses from the drop in First Graphene's long position.| Autosports vs. Aneka Tambang Tbk | Autosports vs. BHP Group Limited | Autosports vs. Commonwealth Bank | Autosports vs. Commonwealth Bank of |
| First Graphene vs. Autosports Group | First Graphene vs. Falcon Metals | First Graphene vs. Homeco Daily Needs | First Graphene vs. Carawine Resources Limited |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |