Correlation Between First Graphene and Asahi Kasei
Can any of the company-specific risk be diversified away by investing in both First Graphene and Asahi Kasei 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 First Graphene and Asahi Kasei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Graphene and Asahi Kasei, you can compare the effects of market volatilities on First Graphene and Asahi Kasei 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 First Graphene with a short position of Asahi Kasei. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Graphene and Asahi Kasei.
Diversification Opportunities for First Graphene and Asahi Kasei
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Asahi is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding First Graphene and Asahi Kasei in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahi Kasei and First Graphene 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 First Graphene are associated (or correlated) with Asahi Kasei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahi Kasei has no effect on the direction of First Graphene i.e., First Graphene and Asahi Kasei go up and down completely randomly.
Pair Corralation between First Graphene and Asahi Kasei
If you would invest 760.00 in Asahi Kasei on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Asahi Kasei or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
First Graphene vs. Asahi Kasei
Performance |
| Timeline |
| First Graphene |
| Asahi Kasei |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
First Graphene and Asahi Kasei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Graphene and Asahi Kasei
The main advantage of trading using opposite First Graphene and Asahi Kasei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Graphene position performs unexpectedly, Asahi Kasei 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 Asahi Kasei will offset losses from the drop in Asahi Kasei's long position.| First Graphene vs. Haydale Graphene Industries | First Graphene vs. Versarien plc | First Graphene vs. NanoXplore | First Graphene vs. G6 Materials Corp |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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