Correlation Between Graphite One and Argosy Minerals
Can any of the company-specific risk be diversified away by investing in both Graphite One and Argosy Minerals 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 Argosy Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphite One and Argosy Minerals Limited, you can compare the effects of market volatilities on Graphite One and Argosy Minerals 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 Argosy Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphite One and Argosy Minerals.
Diversification Opportunities for Graphite One and Argosy Minerals
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Graphite and Argosy is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Graphite One and Argosy Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argosy Minerals 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 Argosy Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argosy Minerals has no effect on the direction of Graphite One i.e., Graphite One and Argosy Minerals go up and down completely randomly.
Pair Corralation between Graphite One and Argosy Minerals
Assuming the 90 days horizon Graphite One is expected to generate 0.36 times more return on investment than Argosy Minerals. However, Graphite One is 2.77 times less risky than Argosy Minerals. It trades about 0.29 of its potential returns per unit of risk. Argosy Minerals Limited is currently generating about 0.04 per unit of risk. If you would invest 48.00 in Graphite One on November 9, 2024 and sell it today you would earn a total of 15.00 from holding Graphite One or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Graphite One vs. Argosy Minerals Limited
Performance |
| Timeline |
| Graphite One |
| Argosy Minerals |
Graphite One and Argosy Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphite One and Argosy Minerals
The main advantage of trading using opposite Graphite One and Argosy Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphite One position performs unexpectedly, Argosy Minerals 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 Argosy Minerals will offset losses from the drop in Argosy Minerals' long position.| Graphite One vs. Mason Graphite | Graphite One vs. Northern Graphite | Graphite One vs. Lomiko Metals | Graphite One vs. IGO Limited |
| Argosy Minerals vs. Edison Cobalt Corp | Argosy Minerals vs. Champion Bear Resources | Argosy Minerals vs. Avarone Metals | Argosy Minerals vs. Adriatic Metals PLC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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