Correlation Between Graham and Nano Nuclear
Can any of the company-specific risk be diversified away by investing in both Graham and Nano Nuclear 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 Graham and Nano Nuclear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham and Nano Nuclear Energy, you can compare the effects of market volatilities on Graham and Nano Nuclear 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 Graham with a short position of Nano Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham and Nano Nuclear.
Diversification Opportunities for Graham and Nano Nuclear
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Graham and Nano is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Graham and Nano Nuclear Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Nuclear Energy and Graham 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 Graham are associated (or correlated) with Nano Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Nuclear Energy has no effect on the direction of Graham i.e., Graham and Nano Nuclear go up and down completely randomly.
Pair Corralation between Graham and Nano Nuclear
Considering the 90-day investment horizon Graham is expected to generate 0.45 times more return on investment than Nano Nuclear. However, Graham is 2.21 times less risky than Nano Nuclear. It trades about 0.44 of its potential returns per unit of risk. Nano Nuclear Energy is currently generating about 0.15 per unit of risk. If you would invest 2,878 in Graham on August 30, 2024 and sell it today you would earn a total of 1,523 from holding Graham or generate 52.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graham vs. Nano Nuclear Energy
Performance |
| Timeline |
| Graham |
| Nano Nuclear Energy |
Graham and Nano Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham and Nano Nuclear
The main advantage of trading using opposite Graham and Nano Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham position performs unexpectedly, Nano Nuclear 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 Nano Nuclear will offset losses from the drop in Nano Nuclear's long position.| Graham vs. Luxfer Holdings PLC | Graham vs. Enerpac Tool Group | Graham vs. Kadant Inc | Graham vs. Omega Flex |
| Nano Nuclear vs. TFI International | Nano Nuclear vs. Scandinavian Tobacco Group | Nano Nuclear vs. PepsiCo | Nano Nuclear vs. Turning Point Brands |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |