Correlation Between Nanophase Technol and Graphene Manufacturing
Can any of the company-specific risk be diversified away by investing in both Nanophase Technol and Graphene Manufacturing 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 Nanophase Technol and Graphene Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanophase Technol and Graphene Manufacturing Group, you can compare the effects of market volatilities on Nanophase Technol and Graphene Manufacturing 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 Nanophase Technol with a short position of Graphene Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanophase Technol and Graphene Manufacturing.
Diversification Opportunities for Nanophase Technol and Graphene Manufacturing
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanophase and Graphene is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Nanophase Technol and Graphene Manufacturing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphene Manufacturing and Nanophase Technol 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 Nanophase Technol are associated (or correlated) with Graphene Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphene Manufacturing has no effect on the direction of Nanophase Technol i.e., Nanophase Technol and Graphene Manufacturing go up and down completely randomly.
Pair Corralation between Nanophase Technol and Graphene Manufacturing
If you would invest 30.00 in Graphene Manufacturing Group on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Graphene Manufacturing Group or generate 90.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.54% |
| Values | Daily Returns |
Nanophase Technol vs. Graphene Manufacturing Group
Performance |
| Timeline |
| Nanophase Technol |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Graphene Manufacturing |
Nanophase Technol and Graphene Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanophase Technol and Graphene Manufacturing
The main advantage of trading using opposite Nanophase Technol and Graphene Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanophase Technol position performs unexpectedly, Graphene Manufacturing 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 Graphene Manufacturing will offset losses from the drop in Graphene Manufacturing's long position.| Nanophase Technol vs. Iofina plc | Nanophase Technol vs. Green Star Products | Nanophase Technol vs. Greystone Logistics | Nanophase Technol vs. Crown Electrokinetics Corp |
| Graphene Manufacturing vs. Iofina plc | Graphene Manufacturing vs. Nano One Materials | Graphene Manufacturing vs. Gevo Inc | Graphene Manufacturing vs. Haydale Graphene Industries |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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