Correlation Between Atlas Corp and Graphene Solar
Can any of the company-specific risk be diversified away by investing in both Atlas Corp 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 Atlas Corp and Graphene Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Graphene Solar Technologies, you can compare the effects of market volatilities on Atlas Corp 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 Atlas Corp with a short position of Graphene Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Graphene Solar.
Diversification Opportunities for Atlas Corp and Graphene Solar
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atlas and Graphene is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp 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 Atlas Corp 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 Atlas Corp 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 Atlas Corp i.e., Atlas Corp and Graphene Solar go up and down completely randomly.
Pair Corralation between Atlas Corp and Graphene Solar
Assuming the 90 days horizon Atlas Corp is expected to generate 1858.6 times less return on investment than Graphene Solar. But when comparing it to its historical volatility, Atlas Corp is 690.68 times less risky than Graphene Solar. It trades about 0.07 of its potential returns per unit of risk. Graphene Solar Technologies is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.52 in Graphene Solar Technologies on September 12, 2024 and sell it today you would earn a total of 0.05 from holding Graphene Solar Technologies or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Corp vs. Graphene Solar Technologies
Performance |
| Timeline |
| Atlas Corp |
| Graphene Solar Techn |
Atlas Corp and Graphene Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Graphene Solar
The main advantage of trading using opposite Atlas Corp and Graphene Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp 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.| Atlas Corp vs. Harrow Health 8625 | Atlas Corp vs. Babcock Wilcox Enterprises, | Atlas Corp vs. B Riley Financial | Atlas Corp vs. Oxford Lane Capital |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |