Correlation Between GrafTech International and Qualstar
Can any of the company-specific risk be diversified away by investing in both GrafTech International and Qualstar 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 Qualstar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GrafTech International and Qualstar, you can compare the effects of market volatilities on GrafTech International and Qualstar 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 Qualstar. Check out your portfolio center. Please also check ongoing floating volatility patterns of GrafTech International and Qualstar.
Diversification Opportunities for GrafTech International and Qualstar
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GrafTech and Qualstar is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding GrafTech International and Qualstar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualstar 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 Qualstar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualstar has no effect on the direction of GrafTech International i.e., GrafTech International and Qualstar go up and down completely randomly.
Pair Corralation between GrafTech International and Qualstar
If you would invest 209.00 in GrafTech International on August 27, 2024 and sell it today you would lose (1.00) from holding GrafTech International or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
GrafTech International vs. Qualstar
Performance |
| Timeline |
| GrafTech International |
| Qualstar |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GrafTech International and Qualstar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GrafTech International and Qualstar
The main advantage of trading using opposite GrafTech International and Qualstar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GrafTech International position performs unexpectedly, Qualstar 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 Qualstar will offset losses from the drop in Qualstar's long position.| GrafTech International vs. Kimball Electronics | GrafTech International vs. Hayward Holdings | GrafTech International vs. Enersys | GrafTech International vs. Espey Mfg Electronics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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