Correlation Between Focus Graphite and Blue Moon
Can any of the company-specific risk be diversified away by investing in both Focus Graphite and Blue Moon 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 Blue Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Graphite and Blue Moon Metals, you can compare the effects of market volatilities on Focus Graphite and Blue Moon 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 Blue Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Graphite and Blue Moon.
Diversification Opportunities for Focus Graphite and Blue Moon
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Focus and Blue is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Focus Graphite and Blue Moon Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Moon Metals 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 Blue Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Moon Metals has no effect on the direction of Focus Graphite i.e., Focus Graphite and Blue Moon go up and down completely randomly.
Pair Corralation between Focus Graphite and Blue Moon
Assuming the 90 days horizon Focus Graphite is expected to under-perform the Blue Moon. But the otc stock apears to be less risky and, when comparing its historical volatility, Focus Graphite is 1.86 times less risky than Blue Moon. The otc stock trades about 0.0 of its potential returns per unit of risk. The Blue Moon Metals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3.92 in Blue Moon Metals on September 14, 2024 and sell it today you would earn a total of 21.08 from holding Blue Moon Metals or generate 537.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Graphite vs. Blue Moon Metals
Performance |
| Timeline |
| Focus Graphite |
| Blue Moon Metals |
Focus Graphite and Blue Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Graphite and Blue Moon
The main advantage of trading using opposite Focus Graphite and Blue Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Graphite position performs unexpectedly, Blue Moon 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 Blue Moon will offset losses from the drop in Blue Moon'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 |
| Blue Moon vs. Qubec Nickel Corp | Blue Moon vs. IGO Limited | Blue Moon vs. Focus Graphite | Blue Moon 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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