Correlation Between First Graphene and Asahi Kaisei
Can any of the company-specific risk be diversified away by investing in both First Graphene and Asahi Kaisei 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 Kaisei 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 Kaisei Corp, you can compare the effects of market volatilities on First Graphene and Asahi Kaisei 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 Kaisei. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Graphene and Asahi Kaisei.
Diversification Opportunities for First Graphene and Asahi Kaisei
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Asahi is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding First Graphene and Asahi Kaisei Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahi Kaisei Corp 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 Kaisei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahi Kaisei Corp has no effect on the direction of First Graphene i.e., First Graphene and Asahi Kaisei go up and down completely randomly.
Pair Corralation between First Graphene and Asahi Kaisei
Assuming the 90 days horizon First Graphene is expected to generate 7.24 times more return on investment than Asahi Kaisei. However, First Graphene is 7.24 times more volatile than Asahi Kaisei Corp. It trades about 0.05 of its potential returns per unit of risk. Asahi Kaisei Corp is currently generating about 0.0 per unit of risk. If you would invest 4.70 in First Graphene on November 3, 2024 and sell it today you would lose (0.70) from holding First Graphene or give up 14.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Graphene vs. Asahi Kaisei Corp
Performance |
| Timeline |
| First Graphene |
| Asahi Kaisei Corp |
First Graphene and Asahi Kaisei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Graphene and Asahi Kaisei
The main advantage of trading using opposite First Graphene and Asahi Kaisei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Graphene position performs unexpectedly, Asahi Kaisei 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 Kaisei will offset losses from the drop in Asahi Kaisei's long position.| First Graphene vs. Haydale Graphene Industries | First Graphene vs. Versarien plc | First Graphene vs. NanoXplore | First Graphene vs. G6 Materials Corp |
| Asahi Kaisei vs. Altech Batteries Limited | Asahi Kaisei vs. Alumifuel Pwr Corp | Asahi Kaisei vs. ASP Isotopes Common | Asahi Kaisei vs. AdvanSix |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |