Correlation Between Graphene Manufacturing and Green Star
Can any of the company-specific risk be diversified away by investing in both Graphene Manufacturing and Green Star 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 Green Star 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 Green Star Products, you can compare the effects of market volatilities on Graphene Manufacturing and Green Star 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 Green Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphene Manufacturing and Green Star.
Diversification Opportunities for Graphene Manufacturing and Green Star
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Graphene and Green is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Graphene Manufacturing Group and Green Star Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Star Products 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 Green Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Star Products has no effect on the direction of Graphene Manufacturing i.e., Graphene Manufacturing and Green Star go up and down completely randomly.
Pair Corralation between Graphene Manufacturing and Green Star
Assuming the 90 days horizon Graphene Manufacturing Group is expected to generate 0.27 times more return on investment than Green Star. However, Graphene Manufacturing Group is 3.75 times less risky than Green Star. It trades about 0.25 of its potential returns per unit of risk. Green Star Products is currently generating about 0.05 per unit of risk. If you would invest 45.00 in Graphene Manufacturing Group on October 23, 2024 and sell it today you would earn a total of 6.00 from holding Graphene Manufacturing Group or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Graphene Manufacturing Group vs. Green Star Products
Performance |
| Timeline |
| Graphene Manufacturing |
| Green Star Products |
Graphene Manufacturing and Green Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphene Manufacturing and Green Star
The main advantage of trading using opposite Graphene Manufacturing and Green Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphene Manufacturing position performs unexpectedly, Green Star 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 Green Star will offset losses from the drop in Green Star'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 |
| Green Star vs. Iofina plc | Green Star vs. Greystone Logistics | Green Star vs. Crown Electrokinetics Corp | Green Star vs. Orica Ltd ADR |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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