Correlation Between Graphite One and Ascendant Resources
Can any of the company-specific risk be diversified away by investing in both Graphite One and Ascendant 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 Ascendant 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 Ascendant Resources, you can compare the effects of market volatilities on Graphite One and Ascendant 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 Ascendant Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphite One and Ascendant Resources.
Diversification Opportunities for Graphite One and Ascendant Resources
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Graphite and Ascendant is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Graphite One and Ascendant Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendant 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 Ascendant Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendant Resources has no effect on the direction of Graphite One i.e., Graphite One and Ascendant Resources go up and down completely randomly.
Pair Corralation between Graphite One and Ascendant Resources
Assuming the 90 days horizon Graphite One is expected to generate 13.62 times less return on investment than Ascendant Resources. But when comparing it to its historical volatility, Graphite One is 5.0 times less risky than Ascendant Resources. It trades about 0.02 of its potential returns per unit of risk. Ascendant Resources is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Ascendant Resources on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Ascendant Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphite One vs. Ascendant Resources
Performance |
| Timeline |
| Graphite One |
| Ascendant Resources |
Graphite One and Ascendant Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphite One and Ascendant Resources
The main advantage of trading using opposite Graphite One and Ascendant Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphite One position performs unexpectedly, Ascendant 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 Ascendant Resources will offset losses from the drop in Ascendant Resources' long position.| Graphite One vs. Mason Graphite | Graphite One vs. Northern Graphite | Graphite One vs. Lomiko Metals | Graphite One vs. IGO Limited |
| Ascendant Resources vs. Edison Cobalt Corp | Ascendant Resources vs. Champion Bear Resources | Ascendant Resources vs. Avarone Metals | Ascendant Resources 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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