Correlation Between Jervois Mining and Graphex Group
Can any of the company-specific risk be diversified away by investing in both Jervois Mining and Graphex Group 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 Jervois Mining and Graphex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jervois Mining and Graphex Group Limited, you can compare the effects of market volatilities on Jervois Mining and Graphex Group 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 Jervois Mining with a short position of Graphex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jervois Mining and Graphex Group.
Diversification Opportunities for Jervois Mining and Graphex Group
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jervois and Graphex is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jervois Mining and Graphex Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphex Group Limited and Jervois Mining 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 Jervois Mining are associated (or correlated) with Graphex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphex Group Limited has no effect on the direction of Jervois Mining i.e., Jervois Mining and Graphex Group go up and down completely randomly.
Pair Corralation between Jervois Mining and Graphex Group
Assuming the 90 days horizon Jervois Mining is expected to under-perform the Graphex Group. In addition to that, Jervois Mining is 2.02 times more volatile than Graphex Group Limited. It trades about -0.1 of its total potential returns per unit of risk. Graphex Group Limited is currently generating about -0.11 per unit of volatility. If you would invest 22.00 in Graphex Group Limited on September 12, 2024 and sell it today you would lose (2.72) from holding Graphex Group Limited or give up 12.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jervois Mining vs. Graphex Group Limited
Performance |
| Timeline |
| Jervois Mining |
| Graphex Group Limited |
Jervois Mining and Graphex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jervois Mining and Graphex Group
The main advantage of trading using opposite Jervois Mining and Graphex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jervois Mining position performs unexpectedly, Graphex Group 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 Graphex Group will offset losses from the drop in Graphex Group's long position.| Jervois Mining vs. Ardea Resources Limited | Jervois Mining vs. Centaurus Metals Limited | Jervois Mining vs. Canada Silver Cobalt | Jervois Mining vs. Blackstone Minerals |
| Graphex Group vs. Leading Edge Materials | Graphex Group vs. Lithium Australia NL | Graphex Group vs. Ardea Resources Limited | Graphex Group vs. Blackstone Minerals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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