Correlation Between Focus Graphite and Bluestone Resources
Can any of the company-specific risk be diversified away by investing in both Focus Graphite and Bluestone Resources 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 Bluestone Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Graphite and Bluestone Resources, you can compare the effects of market volatilities on Focus Graphite and Bluestone Resources 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 Bluestone Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Graphite and Bluestone Resources.
Diversification Opportunities for Focus Graphite and Bluestone Resources
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Focus and Bluestone is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Focus Graphite and Bluestone Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluestone Resources 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 Bluestone Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluestone Resources has no effect on the direction of Focus Graphite i.e., Focus Graphite and Bluestone Resources go up and down completely randomly.
Pair Corralation between Focus Graphite and Bluestone Resources
Assuming the 90 days horizon Focus Graphite is expected to generate 59.69 times less return on investment than Bluestone Resources. But when comparing it to its historical volatility, Focus Graphite is 1.56 times less risky than Bluestone Resources. It trades about 0.0 of its potential returns per unit of risk. Bluestone Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Bluestone Resources on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Bluestone Resources or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.76% |
| Values | Daily Returns |
Focus Graphite vs. Bluestone Resources
Performance |
| Timeline |
| Focus Graphite |
| Bluestone Resources |
Focus Graphite and Bluestone Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Graphite and Bluestone Resources
The main advantage of trading using opposite Focus Graphite and Bluestone Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Graphite position performs unexpectedly, Bluestone Resources 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 Bluestone Resources will offset losses from the drop in Bluestone Resources' long position.| Focus Graphite vs. Northern Graphite | Focus Graphite vs. Syrah Resources Limited | Focus Graphite vs. Altura Mining Limited | Focus Graphite vs. Vulcan Minerals |
| Bluestone Resources vs. Qubec Nickel Corp | Bluestone Resources vs. IGO Limited | Bluestone Resources vs. Focus Graphite | Bluestone Resources 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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