Correlation Between First Graphene and Univar
Can any of the company-specific risk be diversified away by investing in both First Graphene and Univar 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 Univar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Graphene and Univar Inc, you can compare the effects of market volatilities on First Graphene and Univar 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 Univar. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Graphene and Univar.
Diversification Opportunities for First Graphene and Univar
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Univar is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding First Graphene and Univar Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univar Inc 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 Univar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univar Inc has no effect on the direction of First Graphene i.e., First Graphene and Univar go up and down completely randomly.
Pair Corralation between First Graphene and Univar
If you would invest 3.80 in First Graphene on September 1, 2024 and sell it today you would lose (1.70) from holding First Graphene or give up 44.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
First Graphene vs. Univar Inc
Performance |
| Timeline |
| First Graphene |
| Univar Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Graphene and Univar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Graphene and Univar
The main advantage of trading using opposite First Graphene and Univar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Graphene position performs unexpectedly, Univar 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 Univar will offset losses from the drop in Univar's long position.| First Graphene vs. Haydale Graphene Industries | First Graphene vs. Versarien plc | First Graphene vs. NanoXplore | First Graphene vs. G6 Materials Corp |
| Univar vs. Valhi Inc | Univar vs. Huntsman | Univar vs. Lsb Industries | Univar vs. Westlake Chemical Partners |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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