Correlation Between Cypress Development and Graphex Group
Can any of the company-specific risk be diversified away by investing in both Cypress Development and Graphex Group 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 Cypress Development and Graphex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cypress Development Corp and Graphex Group Limited, you can compare the effects of market volatilities on Cypress Development and Graphex Group 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 Cypress Development with a short position of Graphex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cypress Development and Graphex Group.
Diversification Opportunities for Cypress Development and Graphex Group
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cypress and Graphex is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cypress Development Corp and Graphex Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphex Group Limited and Cypress Development 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 Cypress Development Corp are associated (or correlated) with Graphex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphex Group Limited has no effect on the direction of Cypress Development i.e., Cypress Development and Graphex Group go up and down completely randomly.
Pair Corralation between Cypress Development and Graphex Group
Assuming the 90 days horizon Cypress Development Corp is expected to generate 1.08 times more return on investment than Graphex Group. However, Cypress Development is 1.08 times more volatile than Graphex Group Limited. It trades about -0.02 of its potential returns per unit of risk. Graphex Group Limited is currently generating about -0.11 per unit of risk. If you would invest 22.00 in Cypress Development Corp on September 12, 2024 and sell it today you would lose (1.00) from holding Cypress Development Corp or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cypress Development Corp vs. Graphex Group Limited
Performance |
| Timeline |
| Cypress Development Corp |
| Graphex Group Limited |
Cypress Development and Graphex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cypress Development and Graphex Group
The main advantage of trading using opposite Cypress Development and Graphex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cypress Development position performs unexpectedly, Graphex Group 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 Graphex Group will offset losses from the drop in Graphex Group's long position.| Cypress Development vs. Advantage Solutions | Cypress Development vs. Atlas Corp | Cypress Development vs. PureCycle Technologies | Cypress Development vs. WM Technology |
| Graphex Group vs. Leading Edge Materials | Graphex Group vs. Lithium Australia NL | Graphex Group vs. Ardea Resources Limited | Graphex Group vs. Blackstone 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |