Correlation Between Focus Graphite and Placer Creek
Can any of the company-specific risk be diversified away by investing in both Focus Graphite and Placer Creek 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 Placer Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Graphite and Placer Creek Mining, you can compare the effects of market volatilities on Focus Graphite and Placer Creek 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 Placer Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Graphite and Placer Creek.
Diversification Opportunities for Focus Graphite and Placer Creek
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Focus and Placer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Focus Graphite and Placer Creek Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Placer Creek Mining 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 Placer Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Placer Creek Mining has no effect on the direction of Focus Graphite i.e., Focus Graphite and Placer Creek go up and down completely randomly.
Pair Corralation between Focus Graphite and Placer Creek
If you would invest 6.00 in Focus Graphite on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Focus Graphite or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Graphite vs. Placer Creek Mining
Performance |
| Timeline |
| Focus Graphite |
| Placer Creek Mining |
Focus Graphite and Placer Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Graphite and Placer Creek
The main advantage of trading using opposite Focus Graphite and Placer Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Graphite position performs unexpectedly, Placer Creek 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 Placer Creek will offset losses from the drop in Placer Creek'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 |
| Placer Creek vs. Qubec Nickel Corp | Placer Creek vs. IGO Limited | Placer Creek vs. Focus Graphite | Placer Creek 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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