Correlation Between GrafTech International and Ads Tec
Can any of the company-specific risk be diversified away by investing in both GrafTech International and Ads Tec 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 GrafTech International and Ads Tec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GrafTech International and Ads Tec Energy, you can compare the effects of market volatilities on GrafTech International and Ads Tec 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 GrafTech International with a short position of Ads Tec. Check out your portfolio center. Please also check ongoing floating volatility patterns of GrafTech International and Ads Tec.
Diversification Opportunities for GrafTech International and Ads Tec
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GrafTech and Ads is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding GrafTech International and Ads Tec Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ads Tec Energy and GrafTech International 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 GrafTech International are associated (or correlated) with Ads Tec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ads Tec Energy has no effect on the direction of GrafTech International i.e., GrafTech International and Ads Tec go up and down completely randomly.
Pair Corralation between GrafTech International and Ads Tec
Considering the 90-day investment horizon GrafTech International is expected to generate 3.3 times more return on investment than Ads Tec. However, GrafTech International is 3.3 times more volatile than Ads Tec Energy. It trades about 0.05 of its potential returns per unit of risk. Ads Tec Energy is currently generating about -0.22 per unit of risk. If you would invest 209.00 in GrafTech International on August 28, 2024 and sell it today you would earn a total of 5.00 from holding GrafTech International or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GrafTech International vs. Ads Tec Energy
Performance |
| Timeline |
| GrafTech International |
| Ads Tec Energy |
GrafTech International and Ads Tec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GrafTech International and Ads Tec
The main advantage of trading using opposite GrafTech International and Ads Tec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GrafTech International position performs unexpectedly, Ads Tec 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 Ads Tec will offset losses from the drop in Ads Tec's long position.| GrafTech International vs. Kimball Electronics | GrafTech International vs. Hayward Holdings | GrafTech International vs. Enersys | GrafTech International vs. Espey Mfg Electronics |
| Ads Tec vs. Espey Mfg Electronics | Ads Tec vs. NeoVolta Warrant | Ads Tec vs. Kimball Electronics | Ads Tec vs. Hayward Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |