Correlation Between Graphite One and ExGen Resources
Can any of the company-specific risk be diversified away by investing in both Graphite One and ExGen Resources 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 Graphite One and ExGen Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphite One and ExGen Resources, you can compare the effects of market volatilities on Graphite One and ExGen Resources 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 Graphite One with a short position of ExGen Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphite One and ExGen Resources.
Diversification Opportunities for Graphite One and ExGen Resources
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Graphite and ExGen is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Graphite One and ExGen Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExGen Resources and Graphite One 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 Graphite One are associated (or correlated) with ExGen Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExGen Resources has no effect on the direction of Graphite One i.e., Graphite One and ExGen Resources go up and down completely randomly.
Pair Corralation between Graphite One and ExGen Resources
Assuming the 90 days horizon Graphite One is expected to under-perform the ExGen Resources. But the stock apears to be less risky and, when comparing its historical volatility, Graphite One is 2.85 times less risky than ExGen Resources. The stock trades about -0.01 of its potential returns per unit of risk. The ExGen Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8.00 in ExGen Resources on September 2, 2024 and sell it today you would earn a total of 1.00 from holding ExGen Resources or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphite One vs. ExGen Resources
Performance |
| Timeline |
| Graphite One |
| ExGen Resources |
Graphite One and ExGen Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphite One and ExGen Resources
The main advantage of trading using opposite Graphite One and ExGen Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphite One position performs unexpectedly, ExGen Resources 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 ExGen Resources will offset losses from the drop in ExGen Resources' long position.| Graphite One vs. Northern Graphite | Graphite One vs. Mason Graphite | Graphite One vs. Focus Graphite | Graphite One vs. Canada Carbon |
| ExGen Resources vs. Lion One Metals | ExGen Resources vs. Marimaca Copper Corp | ExGen Resources vs. Questor Technology | ExGen Resources vs. Rogers Communications |
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 Stocks Directory module to find actively traded stocks across global markets.
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