Correlation Between Graphjet Technology and Skeena Resources
Can any of the company-specific risk be diversified away by investing in both Graphjet Technology and Skeena 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 Graphjet Technology and Skeena Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphjet Technology and Skeena Resources, you can compare the effects of market volatilities on Graphjet Technology and Skeena 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 Graphjet Technology with a short position of Skeena Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphjet Technology and Skeena Resources.
Diversification Opportunities for Graphjet Technology and Skeena Resources
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphjet and Skeena is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Graphjet Technology and Skeena Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skeena Resources and Graphjet Technology 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 Graphjet Technology are associated (or correlated) with Skeena Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skeena Resources has no effect on the direction of Graphjet Technology i.e., Graphjet Technology and Skeena Resources go up and down completely randomly.
Pair Corralation between Graphjet Technology and Skeena Resources
Considering the 90-day investment horizon Graphjet Technology is expected to generate 1.83 times more return on investment than Skeena Resources. However, Graphjet Technology is 1.83 times more volatile than Skeena Resources. It trades about 0.2 of its potential returns per unit of risk. Skeena Resources is currently generating about -0.13 per unit of risk. If you would invest 225.00 in Graphjet Technology on August 24, 2024 and sell it today you would earn a total of 67.00 from holding Graphjet Technology or generate 29.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphjet Technology vs. Skeena Resources
Performance |
| Timeline |
| Graphjet Technology |
| Skeena Resources |
Graphjet Technology and Skeena Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphjet Technology and Skeena Resources
The main advantage of trading using opposite Graphjet Technology and Skeena Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphjet Technology position performs unexpectedly, Skeena 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 Skeena Resources will offset losses from the drop in Skeena Resources' long position.| Graphjet Technology vs. Plug Power | Graphjet Technology vs. Solid Power | Graphjet Technology vs. CBAK Energy Technology | Graphjet Technology vs. FuelCell Energy |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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