Correlation Between GoMgA Resources and Graphite One
Can any of the company-specific risk be diversified away by investing in both GoMgA Resources and Graphite 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 GoMgA Resources and Graphite One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoMgA Resources and Graphite One, you can compare the effects of market volatilities on GoMgA Resources and Graphite 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 GoMgA Resources with a short position of Graphite One. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoMgA Resources and Graphite One.
Diversification Opportunities for GoMgA Resources and Graphite One
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GoMgA and Graphite is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GoMgA Resources and Graphite One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite One and GoMgA Resources 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 GoMgA Resources are associated (or correlated) with Graphite One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite One has no effect on the direction of GoMgA Resources i.e., GoMgA Resources and Graphite One go up and down completely randomly.
Pair Corralation between GoMgA Resources and Graphite One
Assuming the 90 days horizon GoMgA Resources is expected to under-perform the Graphite One. But the otc stock apears to be less risky and, when comparing its historical volatility, GoMgA Resources is 1.04 times less risky than Graphite One. The otc stock trades about -0.01 of its potential returns per unit of risk. The Graphite One is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Graphite One on October 26, 2024 and sell it today you would earn a total of 10.00 from holding Graphite One or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GoMgA Resources vs. Graphite One
Performance |
| Timeline |
| GoMgA Resources |
| Graphite One |
GoMgA Resources and Graphite One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoMgA Resources and Graphite One
The main advantage of trading using opposite GoMgA Resources and Graphite One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoMgA Resources position performs unexpectedly, Graphite 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 Graphite One will offset losses from the drop in Graphite One's long position.| GoMgA Resources vs. Arctic Star Exploration | GoMgA Resources vs. American Clean Resources | GoMgA Resources vs. Arras Minerals Corp | GoMgA Resources vs. American Creek Resources |
| Graphite One vs. Mason Graphite | Graphite One vs. Northern Graphite | Graphite One vs. Lomiko Metals | Graphite One vs. IGO Limited |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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