Correlation Between Greystone Logistics and Applied Graphene
Can any of the company-specific risk be diversified away by investing in both Greystone Logistics and Applied Graphene 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 Greystone Logistics and Applied Graphene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greystone Logistics and Applied Graphene Materials, you can compare the effects of market volatilities on Greystone Logistics and Applied Graphene 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 Greystone Logistics with a short position of Applied Graphene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greystone Logistics and Applied Graphene.
Diversification Opportunities for Greystone Logistics and Applied Graphene
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greystone and Applied is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Greystone Logistics and Applied Graphene Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Graphene Mat and Greystone Logistics 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 Greystone Logistics are associated (or correlated) with Applied Graphene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Graphene Mat has no effect on the direction of Greystone Logistics i.e., Greystone Logistics and Applied Graphene go up and down completely randomly.
Pair Corralation between Greystone Logistics and Applied Graphene
Given the investment horizon of 90 days Greystone Logistics is expected to generate 72.51 times less return on investment than Applied Graphene. But when comparing it to its historical volatility, Greystone Logistics is 26.09 times less risky than Applied Graphene. It trades about 0.04 of its potential returns per unit of risk. Applied Graphene Materials is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8.00 in Applied Graphene Materials on August 30, 2024 and sell it today you would lose (7.99) from holding Applied Graphene Materials or give up 99.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.42% |
| Values | Daily Returns |
Greystone Logistics vs. Applied Graphene Materials
Performance |
| Timeline |
| Greystone Logistics |
| Applied Graphene Mat |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greystone Logistics and Applied Graphene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greystone Logistics and Applied Graphene
The main advantage of trading using opposite Greystone Logistics and Applied Graphene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greystone Logistics position performs unexpectedly, Applied Graphene 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 Applied Graphene will offset losses from the drop in Applied Graphene's long position.| Greystone Logistics vs. TSS, Common Stock | Greystone Logistics vs. Noble Romans | Greystone Logistics vs. Pacific Health Care | Greystone Logistics vs. Surge Components |
| Applied Graphene vs. First Graphene | Applied Graphene vs. Haydale Graphene Industries | Applied Graphene vs. G6 Materials Corp | Applied Graphene vs. Versarien plc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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