Correlation Between Graphene Manufacturing and NanoXplore
Can any of the company-specific risk be diversified away by investing in both Graphene Manufacturing and NanoXplore 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 NanoXplore 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 NanoXplore, you can compare the effects of market volatilities on Graphene Manufacturing and NanoXplore 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 NanoXplore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphene Manufacturing and NanoXplore.
Diversification Opportunities for Graphene Manufacturing and NanoXplore
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Graphene and NanoXplore is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Graphene Manufacturing Group and NanoXplore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NanoXplore 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 NanoXplore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NanoXplore has no effect on the direction of Graphene Manufacturing i.e., Graphene Manufacturing and NanoXplore go up and down completely randomly.
Pair Corralation between Graphene Manufacturing and NanoXplore
Assuming the 90 days horizon Graphene Manufacturing Group is expected to under-perform the NanoXplore. In addition to that, Graphene Manufacturing is 1.62 times more volatile than NanoXplore. It trades about -0.06 of its total potential returns per unit of risk. NanoXplore is currently generating about -0.02 per unit of volatility. If you would invest 347.00 in NanoXplore on August 31, 2024 and sell it today you would lose (122.00) from holding NanoXplore or give up 35.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphene Manufacturing Group vs. NanoXplore
Performance |
| Timeline |
| Graphene Manufacturing |
| NanoXplore |
Graphene Manufacturing and NanoXplore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphene Manufacturing and NanoXplore
The main advantage of trading using opposite Graphene Manufacturing and NanoXplore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphene Manufacturing position performs unexpectedly, NanoXplore 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 NanoXplore will offset losses from the drop in NanoXplore's long position.| Graphene Manufacturing vs. Iofina plc | Graphene Manufacturing vs. Nano One Materials | Graphene Manufacturing vs. Gevo Inc | Graphene Manufacturing vs. Haydale Graphene Industries |
| NanoXplore vs. Graphene Manufacturing Group | NanoXplore vs. Nano One Materials | NanoXplore vs. Coveo Solutions | NanoXplore vs. ZEN Graphene Solutions |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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