Correlation Between Ganfeng Lithium and Haydale Graphene
Can any of the company-specific risk be diversified away by investing in both Ganfeng Lithium and Haydale 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 Ganfeng Lithium and Haydale Graphene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ganfeng Lithium Co and Haydale Graphene Industries, you can compare the effects of market volatilities on Ganfeng Lithium and Haydale 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 Ganfeng Lithium with a short position of Haydale Graphene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ganfeng Lithium and Haydale Graphene.
Diversification Opportunities for Ganfeng Lithium and Haydale Graphene
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ganfeng and Haydale is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ganfeng Lithium Co and Haydale Graphene Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haydale Graphene Ind and Ganfeng Lithium 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 Ganfeng Lithium Co are associated (or correlated) with Haydale Graphene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haydale Graphene Ind has no effect on the direction of Ganfeng Lithium i.e., Ganfeng Lithium and Haydale Graphene go up and down completely randomly.
Pair Corralation between Ganfeng Lithium and Haydale Graphene
Assuming the 90 days horizon Ganfeng Lithium Co is expected to under-perform the Haydale Graphene. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ganfeng Lithium Co is 4.88 times less risky than Haydale Graphene. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Haydale Graphene Industries is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 0.30 in Haydale Graphene Industries on September 12, 2024 and sell it today you would lose (0.09) from holding Haydale Graphene Industries or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ganfeng Lithium Co vs. Haydale Graphene Industries
Performance |
| Timeline |
| Ganfeng Lithium |
| Haydale Graphene Ind |
Ganfeng Lithium and Haydale Graphene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ganfeng Lithium and Haydale Graphene
The main advantage of trading using opposite Ganfeng Lithium and Haydale Graphene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ganfeng Lithium position performs unexpectedly, Haydale 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 Haydale Graphene will offset losses from the drop in Haydale Graphene's long position.| Ganfeng Lithium vs. BASF SE NA | Ganfeng Lithium vs. Braskem SA Class | Ganfeng Lithium vs. Lsb Industries | Ganfeng Lithium vs. Dow Inc |
| Haydale Graphene vs. Chemours Co | Haydale Graphene vs. International Flavors Fragrances | Haydale Graphene vs. Air Products and | Haydale Graphene vs. PPG Industries |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |