Correlation Between Graphene Manufacturing and Nano One
Can any of the company-specific risk be diversified away by investing in both Graphene Manufacturing and Nano One 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 Nano One 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 Nano One Materials, you can compare the effects of market volatilities on Graphene Manufacturing and Nano One 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 Nano One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphene Manufacturing and Nano One.
Diversification Opportunities for Graphene Manufacturing and Nano One
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Graphene and Nano is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Graphene Manufacturing Group and Nano One Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano One Materials 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 Nano One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano One Materials has no effect on the direction of Graphene Manufacturing i.e., Graphene Manufacturing and Nano One go up and down completely randomly.
Pair Corralation between Graphene Manufacturing and Nano One
Assuming the 90 days horizon Graphene Manufacturing Group is expected to generate 1.64 times more return on investment than Nano One. However, Graphene Manufacturing is 1.64 times more volatile than Nano One Materials. It trades about -0.04 of its potential returns per unit of risk. Nano One Materials is currently generating about -0.46 per unit of risk. If you would invest 46.00 in Graphene Manufacturing Group on August 30, 2024 and sell it today you would lose (3.00) from holding Graphene Manufacturing Group or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphene Manufacturing Group vs. Nano One Materials
Performance |
| Timeline |
| Graphene Manufacturing |
| Nano One Materials |
Graphene Manufacturing and Nano One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphene Manufacturing and Nano One
The main advantage of trading using opposite Graphene Manufacturing and Nano One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphene Manufacturing position performs unexpectedly, Nano One 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 One will offset losses from the drop in Nano One's long position.| Graphene Manufacturing vs. Akzo Nobel NV | Graphene Manufacturing vs. Avoca LLC | Graphene Manufacturing vs. Arkema SA ADR | Graphene Manufacturing vs. HUMANA INC |
| Nano One vs. G6 Materials Corp | Nano One vs. Haydale Graphene Industries | Nano One vs. Orica Limited | Nano One vs. Johnson Matthey 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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