Correlation Between G6 Materials and Haydale Graphene
Can any of the company-specific risk be diversified away by investing in both G6 Materials 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 G6 Materials and Haydale Graphene 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 Haydale Graphene Industries, you can compare the effects of market volatilities on G6 Materials 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 G6 Materials with a short position of Haydale Graphene. Check out your portfolio center. Please also check ongoing floating volatility patterns of G6 Materials and Haydale Graphene.
Diversification Opportunities for G6 Materials and Haydale Graphene
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GPHBF and Haydale is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding G6 Materials Corp 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 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 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 G6 Materials i.e., G6 Materials and Haydale Graphene go up and down completely randomly.
Pair Corralation between G6 Materials and Haydale Graphene
Assuming the 90 days horizon G6 Materials Corp is expected to under-perform the Haydale Graphene. But the pink sheet apears to be less risky and, when comparing its historical volatility, G6 Materials Corp is 3.54 times less risky than Haydale Graphene. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Haydale Graphene Industries is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.20 in Haydale Graphene Industries on August 30, 2024 and sell it today you would earn a total of 0.12 from holding Haydale Graphene Industries or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G6 Materials Corp vs. Haydale Graphene Industries
Performance |
| Timeline |
| G6 Materials Corp |
| Haydale Graphene Ind |
G6 Materials and Haydale Graphene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G6 Materials and Haydale Graphene
The main advantage of trading using opposite G6 Materials and Haydale Graphene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G6 Materials 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.| G6 Materials vs. Akzo Nobel NV | G6 Materials vs. Avoca LLC | G6 Materials vs. Arkema SA ADR | G6 Materials vs. HUMANA INC |
| Haydale Graphene vs. Akzo Nobel NV | Haydale Graphene vs. Avoca LLC | Haydale Graphene vs. Arkema SA ADR | Haydale Graphene vs. HUMANA INC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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