Correlation Between FuelPositive Corp and Graphene Manufacturing
Can any of the company-specific risk be diversified away by investing in both FuelPositive Corp 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 FuelPositive Corp and Graphene Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FuelPositive Corp and Graphene Manufacturing Group, you can compare the effects of market volatilities on FuelPositive Corp 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 FuelPositive Corp with a short position of Graphene Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of FuelPositive Corp and Graphene Manufacturing.
Diversification Opportunities for FuelPositive Corp and Graphene Manufacturing
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between FuelPositive and Graphene is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding FuelPositive Corp and Graphene Manufacturing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphene Manufacturing and FuelPositive Corp 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 FuelPositive Corp 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 FuelPositive Corp i.e., FuelPositive Corp and Graphene Manufacturing go up and down completely randomly.
Pair Corralation between FuelPositive Corp and Graphene Manufacturing
Assuming the 90 days trading horizon FuelPositive Corp is expected to generate 3.01 times less return on investment than Graphene Manufacturing. In addition to that, FuelPositive Corp is 2.62 times more volatile than Graphene Manufacturing Group. It trades about 0.04 of its total potential returns per unit of risk. Graphene Manufacturing Group is currently generating about 0.35 per unit of volatility. If you would invest 45.00 in Graphene Manufacturing Group on October 24, 2024 and sell it today you would earn a total of 11.00 from holding Graphene Manufacturing Group or generate 24.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
FuelPositive Corp vs. Graphene Manufacturing Group
Performance |
| Timeline |
| FuelPositive Corp |
| Graphene Manufacturing |
FuelPositive Corp and Graphene Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FuelPositive Corp and Graphene Manufacturing
The main advantage of trading using opposite FuelPositive Corp and Graphene Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FuelPositive Corp 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.| FuelPositive Corp vs. FuelPositive Corp | FuelPositive Corp vs. Eguana Technologies | FuelPositive Corp vs. Exro Technologies |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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