Correlation Between Graphene Manufacturing and ZEN Graphene
Can any of the company-specific risk be diversified away by investing in both Graphene Manufacturing and ZEN 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 Graphene Manufacturing and ZEN Graphene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphene Manufacturing Group and ZEN Graphene Solutions, you can compare the effects of market volatilities on Graphene Manufacturing and ZEN 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 Graphene Manufacturing with a short position of ZEN Graphene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphene Manufacturing and ZEN Graphene.
Diversification Opportunities for Graphene Manufacturing and ZEN Graphene
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphene and ZEN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Graphene Manufacturing Group and ZEN Graphene Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEN Graphene Solutions and Graphene Manufacturing 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 Graphene Manufacturing Group are associated (or correlated) with ZEN Graphene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEN Graphene Solutions has no effect on the direction of Graphene Manufacturing i.e., Graphene Manufacturing and ZEN Graphene go up and down completely randomly.
Pair Corralation between Graphene Manufacturing and ZEN Graphene
Assuming the 90 days horizon Graphene Manufacturing Group is expected to under-perform the ZEN Graphene. But the stock apears to be less risky and, when comparing its historical volatility, Graphene Manufacturing Group is 1.99 times less risky than ZEN Graphene. The stock trades about 0.0 of its potential returns per unit of risk. The ZEN Graphene Solutions is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 95.00 in ZEN Graphene Solutions on September 1, 2024 and sell it today you would earn a total of 70.00 from holding ZEN Graphene Solutions or generate 73.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Graphene Manufacturing Group vs. ZEN Graphene Solutions
Performance |
| Timeline |
| Graphene Manufacturing |
| ZEN Graphene Solutions |
Graphene Manufacturing and ZEN Graphene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphene Manufacturing and ZEN Graphene
The main advantage of trading using opposite Graphene Manufacturing and ZEN Graphene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphene Manufacturing position performs unexpectedly, ZEN 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 ZEN Graphene will offset losses from the drop in ZEN Graphene's long position.| Graphene Manufacturing vs. Graphene Manufacturing Group | Graphene Manufacturing vs. ZEN Graphene Solutions | Graphene Manufacturing vs. NanoXplore | Graphene Manufacturing vs. Neo Battery Materials |
| ZEN Graphene vs. American Manganese | ZEN Graphene vs. Frontier Lithium | ZEN Graphene vs. Graphene Manufacturing Group | ZEN Graphene 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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