Correlation Between Focus Graphite and Huntsman Exploration
Can any of the company-specific risk be diversified away by investing in both Focus Graphite and Huntsman Exploration 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 Focus Graphite and Huntsman Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Graphite and Huntsman Exploration, you can compare the effects of market volatilities on Focus Graphite and Huntsman Exploration 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 Focus Graphite with a short position of Huntsman Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Graphite and Huntsman Exploration.
Diversification Opportunities for Focus Graphite and Huntsman Exploration
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Focus and Huntsman is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Focus Graphite and Huntsman Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntsman Exploration and Focus Graphite 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 Focus Graphite are associated (or correlated) with Huntsman Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntsman Exploration has no effect on the direction of Focus Graphite i.e., Focus Graphite and Huntsman Exploration go up and down completely randomly.
Pair Corralation between Focus Graphite and Huntsman Exploration
Assuming the 90 days horizon Focus Graphite is expected to under-perform the Huntsman Exploration. But the otc stock apears to be less risky and, when comparing its historical volatility, Focus Graphite is 5.44 times less risky than Huntsman Exploration. The otc stock trades about 0.0 of its potential returns per unit of risk. The Huntsman Exploration is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2.00 in Huntsman Exploration on September 14, 2024 and sell it today you would earn a total of 0.40 from holding Huntsman Exploration or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Graphite vs. Huntsman Exploration
Performance |
| Timeline |
| Focus Graphite |
| Huntsman Exploration |
Focus Graphite and Huntsman Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Graphite and Huntsman Exploration
The main advantage of trading using opposite Focus Graphite and Huntsman Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Graphite position performs unexpectedly, Huntsman Exploration 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 Huntsman Exploration will offset losses from the drop in Huntsman Exploration's long position.| Focus Graphite vs. Northern Graphite | Focus Graphite vs. Syrah Resources Limited | Focus Graphite vs. Altura Mining Limited | Focus Graphite vs. Vulcan Minerals |
| Huntsman Exploration vs. Qubec Nickel Corp | Huntsman Exploration vs. IGO Limited | Huntsman Exploration vs. Focus Graphite | Huntsman Exploration vs. Mineral Res |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |