Correlation Between Graphex Group and Interra Copper
Can any of the company-specific risk be diversified away by investing in both Graphex Group and Interra Copper 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 Graphex Group and Interra Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphex Group Limited and Interra Copper Corp, you can compare the effects of market volatilities on Graphex Group and Interra Copper 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 Graphex Group with a short position of Interra Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphex Group and Interra Copper.
Diversification Opportunities for Graphex Group and Interra Copper
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Graphex and Interra is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Graphex Group Limited and Interra Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interra Copper Corp and Graphex Group 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 Graphex Group Limited are associated (or correlated) with Interra Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interra Copper Corp has no effect on the direction of Graphex Group i.e., Graphex Group and Interra Copper go up and down completely randomly.
Pair Corralation between Graphex Group and Interra Copper
Given the investment horizon of 90 days Graphex Group Limited is expected to under-perform the Interra Copper. But the stock apears to be less risky and, when comparing its historical volatility, Graphex Group Limited is 1.47 times less risky than Interra Copper. The stock trades about -0.02 of its potential returns per unit of risk. The Interra Copper Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 60.00 in Interra Copper Corp on September 4, 2024 and sell it today you would lose (54.03) from holding Interra Copper Corp or give up 90.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphex Group Limited vs. Interra Copper Corp
Performance |
| Timeline |
| Graphex Group Limited |
| Interra Copper Corp |
Graphex Group and Interra Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphex Group and Interra Copper
The main advantage of trading using opposite Graphex Group and Interra Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphex Group position performs unexpectedly, Interra Copper 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 Interra Copper will offset losses from the drop in Interra Copper's long position.| Graphex Group vs. Qubec Nickel Corp | Graphex Group vs. American Rare Earths | Graphex Group vs. Cypress Development Corp | Graphex Group vs. Jervois Mining |
| Interra Copper vs. Qubec Nickel Corp | Interra Copper vs. IGO Limited | Interra Copper vs. Avarone Metals | Interra Copper 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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