Correlation Between Focus Graphite and REDFLEX HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Focus Graphite and REDFLEX HOLDINGS 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 REDFLEX HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Graphite and REDFLEX HOLDINGS LTD, you can compare the effects of market volatilities on Focus Graphite and REDFLEX HOLDINGS 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 REDFLEX HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Graphite and REDFLEX HOLDINGS.
Diversification Opportunities for Focus Graphite and REDFLEX HOLDINGS
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Focus and REDFLEX is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Focus Graphite and REDFLEX HOLDINGS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REDFLEX HOLDINGS LTD 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 REDFLEX HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REDFLEX HOLDINGS LTD has no effect on the direction of Focus Graphite i.e., Focus Graphite and REDFLEX HOLDINGS go up and down completely randomly.
Pair Corralation between Focus Graphite and REDFLEX HOLDINGS
Assuming the 90 days horizon Focus Graphite is expected to under-perform the REDFLEX HOLDINGS. But the otc stock apears to be less risky and, when comparing its historical volatility, Focus Graphite is 2.0 times less risky than REDFLEX HOLDINGS. The otc stock trades about -0.04 of its potential returns per unit of risk. The REDFLEX HOLDINGS LTD is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2.15 in REDFLEX HOLDINGS LTD on October 7, 2024 and sell it today you would earn a total of 0.34 from holding REDFLEX HOLDINGS LTD or generate 15.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Graphite vs. REDFLEX HOLDINGS LTD
Performance |
| Timeline |
| Focus Graphite |
| REDFLEX HOLDINGS LTD |
Focus Graphite and REDFLEX HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Graphite and REDFLEX HOLDINGS
The main advantage of trading using opposite Focus Graphite and REDFLEX HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Graphite position performs unexpectedly, REDFLEX HOLDINGS 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 REDFLEX HOLDINGS will offset losses from the drop in REDFLEX HOLDINGS's long position.| Focus Graphite vs. Norra Metals Corp | Focus Graphite vs. E79 Resources Corp | Focus Graphite vs. Voltage Metals Corp | Focus Graphite vs. Cantex Mine Development |
| REDFLEX HOLDINGS vs. Bankwell Financial Group | REDFLEX HOLDINGS vs. East West Bancorp | REDFLEX HOLDINGS vs. Barings BDC | REDFLEX HOLDINGS vs. Artisan Partners Asset |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |