Correlation Between China Sun and Focus Graphite
Can any of the company-specific risk be diversified away by investing in both China Sun and Focus Graphite 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 Sun and Focus Graphite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Sun Grp and Focus Graphite, you can compare the effects of market volatilities on China Sun and Focus Graphite 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 Sun with a short position of Focus Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sun and Focus Graphite.
Diversification Opportunities for China Sun and Focus Graphite
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Focus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Sun Grp and Focus Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Graphite and China Sun 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 Sun Grp are associated (or correlated) with Focus Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Graphite has no effect on the direction of China Sun i.e., China Sun and Focus Graphite go up and down completely randomly.
Pair Corralation between China Sun and Focus Graphite
If you would invest 6.00 in Focus Graphite on September 1, 2024 and sell it today you would lose (0.34) from holding Focus Graphite or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sun Grp vs. Focus Graphite
Performance |
| Timeline |
| China Sun Grp |
| Focus Graphite |
China Sun and Focus Graphite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sun and Focus Graphite
The main advantage of trading using opposite China Sun and Focus Graphite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sun position performs unexpectedly, Focus Graphite 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 Focus Graphite will offset losses from the drop in Focus Graphite's long position.| China Sun vs. South32 Limited | China Sun vs. NioCorp Developments Ltd | China Sun vs. HUMANA INC | China Sun vs. SCOR PK |
| Focus Graphite vs. Northern Graphite | Focus Graphite vs. Syrah Resources Limited | Focus Graphite vs. Altura Mining Limited | Focus Graphite vs. Vulcan Minerals |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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