Correlation Between China Carbon and FREYR Battery
Can any of the company-specific risk be diversified away by investing in both China Carbon and FREYR Battery 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 China Carbon and FREYR Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Carbon Graphit and FREYR Battery SA, you can compare the effects of market volatilities on China Carbon and FREYR Battery 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 China Carbon with a short position of FREYR Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Carbon and FREYR Battery.
Diversification Opportunities for China Carbon and FREYR Battery
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and FREYR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Carbon Graphit and FREYR Battery SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FREYR Battery SA and China Carbon 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 China Carbon Graphit are associated (or correlated) with FREYR Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FREYR Battery SA has no effect on the direction of China Carbon i.e., China Carbon and FREYR Battery go up and down completely randomly.
Pair Corralation between China Carbon and FREYR Battery
If you would invest 101.00 in FREYR Battery SA on September 13, 2024 and sell it today you would earn a total of 70.00 from holding FREYR Battery SA or generate 69.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Carbon Graphit vs. FREYR Battery SA
Performance |
| Timeline |
| China Carbon Graphit |
| FREYR Battery SA |
China Carbon and FREYR Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Carbon and FREYR Battery
The main advantage of trading using opposite China Carbon and FREYR Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Carbon position performs unexpectedly, FREYR Battery 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 FREYR Battery will offset losses from the drop in FREYR Battery's long position.| China Carbon vs. FREYR Battery SA | China Carbon vs. nVent Electric PLC | China Carbon vs. Hubbell | China Carbon vs. Advanced Energy Industries |
| FREYR Battery vs. Solid Power | FREYR Battery vs. Enovix Corp | FREYR Battery vs. Microvast Holdings | FREYR Battery vs. LiCycle Holdings Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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