Correlation Between FREYR Battery and China Carbon
Can any of the company-specific risk be diversified away by investing in both FREYR Battery and China Carbon 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 FREYR Battery and China Carbon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FREYR Battery SA and China Carbon Graphit, you can compare the effects of market volatilities on FREYR Battery and China Carbon 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 FREYR Battery with a short position of China Carbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of FREYR Battery and China Carbon.
Diversification Opportunities for FREYR Battery and China Carbon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FREYR and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FREYR Battery SA and China Carbon Graphit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Carbon Graphit and FREYR Battery 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 FREYR Battery SA are associated (or correlated) with China Carbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Carbon Graphit has no effect on the direction of FREYR Battery i.e., FREYR Battery and China Carbon go up and down completely randomly.
Pair Corralation between FREYR Battery and China Carbon
If you would invest 97.00 in FREYR Battery SA on September 1, 2024 and sell it today you would earn a total of 110.00 from holding FREYR Battery SA or generate 113.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FREYR Battery SA vs. China Carbon Graphit
Performance |
| Timeline |
| FREYR Battery SA |
| China Carbon Graphit |
FREYR Battery and China Carbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FREYR Battery and China Carbon
The main advantage of trading using opposite FREYR Battery and China Carbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FREYR Battery position performs unexpectedly, China Carbon 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 China Carbon will offset losses from the drop in China Carbon's long position.| FREYR Battery vs. Solid Power | FREYR Battery vs. Enovix Corp | FREYR Battery vs. Microvast Holdings | FREYR Battery vs. LiCycle Holdings Corp |
| China Carbon vs. Focus Graphite | China Carbon vs. China Power Equipment | China Carbon vs. China Sun Grp | China Carbon vs. Northern Graphite |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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