Correlation Between G6 Materials and Endocan Corp
Can any of the company-specific risk be diversified away by investing in both G6 Materials and Endocan Corp 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 G6 Materials and Endocan Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G6 Materials Corp and Endocan Corp, you can compare the effects of market volatilities on G6 Materials and Endocan Corp 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 G6 Materials with a short position of Endocan Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of G6 Materials and Endocan Corp.
Diversification Opportunities for G6 Materials and Endocan Corp
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between GPHBF and Endocan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding G6 Materials Corp and Endocan Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endocan Corp and G6 Materials 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 G6 Materials Corp are associated (or correlated) with Endocan Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endocan Corp has no effect on the direction of G6 Materials i.e., G6 Materials and Endocan Corp go up and down completely randomly.
Pair Corralation between G6 Materials and Endocan Corp
If you would invest 0.01 in Endocan Corp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Endocan Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G6 Materials Corp vs. Endocan Corp
Performance |
| Timeline |
| G6 Materials Corp |
| Endocan Corp |
G6 Materials and Endocan Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G6 Materials and Endocan Corp
The main advantage of trading using opposite G6 Materials and Endocan Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G6 Materials position performs unexpectedly, Endocan Corp 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 Endocan Corp will offset losses from the drop in Endocan Corp's long position.| G6 Materials vs. Versarien plc | G6 Materials vs. Graphene Manufacturing Group | G6 Materials vs. 5E Advanced Materials | G6 Materials vs. Haydale Graphene Industries |
| Endocan Corp vs. G6 Materials Corp | Endocan Corp vs. Versarien plc | Endocan Corp vs. Graphene Manufacturing Group | Endocan Corp vs. 5E Advanced Materials |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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