Correlation Between Mason Graphite and Graphite One
Can any of the company-specific risk be diversified away by investing in both Mason Graphite and Graphite One 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 Mason Graphite and Graphite One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mason Graphite and Graphite One, you can compare the effects of market volatilities on Mason Graphite and Graphite One 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 Mason Graphite with a short position of Graphite One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mason Graphite and Graphite One.
Diversification Opportunities for Mason Graphite and Graphite One
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mason and Graphite is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mason Graphite and Graphite One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite One and Mason Graphite 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 Mason Graphite are associated (or correlated) with Graphite One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite One has no effect on the direction of Mason Graphite i.e., Mason Graphite and Graphite One go up and down completely randomly.
Pair Corralation between Mason Graphite and Graphite One
Assuming the 90 days horizon Mason Graphite is expected to generate 1.59 times more return on investment than Graphite One. However, Mason Graphite is 1.59 times more volatile than Graphite One. It trades about -0.01 of its potential returns per unit of risk. Graphite One is currently generating about -0.02 per unit of risk. If you would invest 18.00 in Mason Graphite on November 1, 2024 and sell it today you would lose (12.42) from holding Mason Graphite or give up 69.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mason Graphite vs. Graphite One
Performance |
| Timeline |
| Mason Graphite |
| Graphite One |
Mason Graphite and Graphite One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mason Graphite and Graphite One
The main advantage of trading using opposite Mason Graphite and Graphite One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mason Graphite position performs unexpectedly, Graphite One 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 Graphite One will offset losses from the drop in Graphite One's long position.| Mason Graphite vs. Northern Graphite | Mason Graphite vs. Graphite One | Mason Graphite vs. Lomiko Metals | Mason Graphite vs. IGO Limited |
| Graphite One vs. Mason Graphite | Graphite One vs. Northern Graphite | Graphite One vs. Lomiko Metals | Graphite One vs. IGO Limited |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |