Correlation Between Graphite One and Stans Energy
Can any of the company-specific risk be diversified away by investing in both Graphite One and Stans Energy 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 Stans Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphite One and Stans Energy Corp, you can compare the effects of market volatilities on Graphite One and Stans Energy 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 Stans Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphite One and Stans Energy.
Diversification Opportunities for Graphite One and Stans Energy
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphite and Stans is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Graphite One and Stans Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stans Energy Corp 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 Stans Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stans Energy Corp has no effect on the direction of Graphite One i.e., Graphite One and Stans Energy go up and down completely randomly.
Pair Corralation between Graphite One and Stans Energy
Assuming the 90 days horizon Graphite One is expected to generate 0.25 times more return on investment than Stans Energy. However, Graphite One is 4.06 times less risky than Stans Energy. It trades about 0.23 of its potential returns per unit of risk. Stans Energy Corp is currently generating about -0.24 per unit of risk. If you would invest 46.00 in Graphite One on October 26, 2024 and sell it today you would earn a total of 10.00 from holding Graphite One or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphite One vs. Stans Energy Corp
Performance |
| Timeline |
| Graphite One |
| Stans Energy Corp |
Graphite One and Stans Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphite One and Stans Energy
The main advantage of trading using opposite Graphite One and Stans Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphite One position performs unexpectedly, Stans Energy 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 Stans Energy will offset losses from the drop in Stans Energy's long position.| Graphite One vs. Mason Graphite | Graphite One vs. Northern Graphite | Graphite One vs. Lomiko Metals | Graphite One vs. IGO Limited |
| Stans Energy vs. Ridgestone Mining | Stans Energy vs. Lion Copper and | Stans Energy vs. FPX Nickel Corp | Stans Energy vs. Focus Graphite |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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