Correlation Between Amarc Resources and Graphite One
Can any of the company-specific risk be diversified away by investing in both Amarc Resources and Graphite 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 Amarc Resources and Graphite One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amarc Resources and Graphite One, you can compare the effects of market volatilities on Amarc Resources and Graphite 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 Amarc Resources with a short position of Graphite One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarc Resources and Graphite One.
Diversification Opportunities for Amarc Resources and Graphite One
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amarc and Graphite is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amarc Resources and Graphite One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite One and Amarc Resources 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 Amarc Resources are associated (or correlated) with Graphite One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite One has no effect on the direction of Amarc Resources i.e., Amarc Resources and Graphite One go up and down completely randomly.
Pair Corralation between Amarc Resources and Graphite One
Assuming the 90 days horizon Amarc Resources is expected to generate 1.45 times more return on investment than Graphite One. However, Amarc Resources is 1.45 times more volatile than Graphite One. It trades about 0.04 of its potential returns per unit of risk. Graphite One is currently generating about 0.0 per unit of risk. If you would invest 11.00 in Amarc Resources on August 30, 2024 and sell it today you would earn a total of 2.00 from holding Amarc Resources or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amarc Resources vs. Graphite One
Performance |
| Timeline |
| Amarc Resources |
| Graphite One |
Amarc Resources and Graphite One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarc Resources and Graphite One
The main advantage of trading using opposite Amarc Resources and Graphite One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarc Resources position performs unexpectedly, Graphite 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 Graphite One will offset losses from the drop in Graphite One's long position.| Amarc Resources vs. Durango Resources | Amarc Resources vs. Avarone Metals | Amarc Resources vs. Pampa Metals | Amarc Resources vs. Sun Summit Minerals |
| Graphite One vs. Silver Hammer Mining | Graphite One vs. Reyna Silver Corp | Graphite One vs. Guanajuato Silver | Graphite One vs. Silver One Resources |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |