Correlation Between Graphene Solar and Photronics
Can any of the company-specific risk be diversified away by investing in both Graphene Solar and Photronics 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 Graphene Solar and Photronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphene Solar Technologies and Photronics, you can compare the effects of market volatilities on Graphene Solar and Photronics 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 Graphene Solar with a short position of Photronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphene Solar and Photronics.
Diversification Opportunities for Graphene Solar and Photronics
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphene and Photronics is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Graphene Solar Technologies and Photronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photronics and Graphene Solar 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 Graphene Solar Technologies are associated (or correlated) with Photronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photronics has no effect on the direction of Graphene Solar i.e., Graphene Solar and Photronics go up and down completely randomly.
Pair Corralation between Graphene Solar and Photronics
Given the investment horizon of 90 days Graphene Solar Technologies is expected to generate 37.4 times more return on investment than Photronics. However, Graphene Solar is 37.4 times more volatile than Photronics. It trades about 0.11 of its potential returns per unit of risk. Photronics is currently generating about 0.0 per unit of risk. If you would invest 1.34 in Graphene Solar Technologies on September 2, 2024 and sell it today you would lose (0.79) from holding Graphene Solar Technologies or give up 58.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Graphene Solar Technologies vs. Photronics
Performance |
| Timeline |
| Graphene Solar Techn |
| Photronics |
Graphene Solar and Photronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphene Solar and Photronics
The main advantage of trading using opposite Graphene Solar and Photronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphene Solar position performs unexpectedly, Photronics 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 Photronics will offset losses from the drop in Photronics' long position.| Graphene Solar vs. South32 Limited | Graphene Solar vs. NioCorp Developments Ltd | Graphene Solar vs. HUMANA INC | Graphene Solar vs. SCOR PK |
| Photronics vs. Aehr Test Systems | Photronics vs. Lam Research Corp | Photronics vs. KLA Tencor | Photronics vs. Kulicke and Soffa |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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