Correlation Between Polymeric Resources and Haydale Graphene
Can any of the company-specific risk be diversified away by investing in both Polymeric Resources and Haydale Graphene 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 Polymeric Resources and Haydale Graphene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polymeric Resources and Haydale Graphene Industries, you can compare the effects of market volatilities on Polymeric Resources and Haydale Graphene 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 Polymeric Resources with a short position of Haydale Graphene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polymeric Resources and Haydale Graphene.
Diversification Opportunities for Polymeric Resources and Haydale Graphene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Polymeric and Haydale is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Polymeric Resources and Haydale Graphene Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haydale Graphene Ind and Polymeric Resources 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 Polymeric Resources are associated (or correlated) with Haydale Graphene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haydale Graphene Ind has no effect on the direction of Polymeric Resources i.e., Polymeric Resources and Haydale Graphene go up and down completely randomly.
Pair Corralation between Polymeric Resources and Haydale Graphene
Given the investment horizon of 90 days Polymeric Resources is expected to under-perform the Haydale Graphene. But the pink sheet apears to be less risky and, when comparing its historical volatility, Polymeric Resources is 5.56 times less risky than Haydale Graphene. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Haydale Graphene Industries is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.45 in Haydale Graphene Industries on January 14, 2025 and sell it today you would lose (0.24) from holding Haydale Graphene Industries or give up 53.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polymeric Resources vs. Haydale Graphene Industries
Performance |
| Timeline |
| Polymeric Resources |
| Haydale Graphene Ind |
Polymeric Resources and Haydale Graphene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polymeric Resources and Haydale Graphene
The main advantage of trading using opposite Polymeric Resources and Haydale Graphene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polymeric Resources position performs unexpectedly, Haydale Graphene 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 Haydale Graphene will offset losses from the drop in Haydale Graphene's long position.| Polymeric Resources vs. Celanese | Polymeric Resources vs. Huntsman | Polymeric Resources vs. BASF SE ADR | Polymeric Resources vs. Tronox Holdings PLC |
| Haydale Graphene vs. Chemours Co | Haydale Graphene vs. International Flavors Fragrances | Haydale Graphene vs. Air Products and | Haydale Graphene vs. PPG 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |