Correlation Between Richtech Robotics and Graham
Can any of the company-specific risk be diversified away by investing in both Richtech Robotics and Graham 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 Richtech Robotics and Graham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Richtech Robotics Class and Graham, you can compare the effects of market volatilities on Richtech Robotics and Graham 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 Richtech Robotics with a short position of Graham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Richtech Robotics and Graham.
Diversification Opportunities for Richtech Robotics and Graham
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Richtech and Graham is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Richtech Robotics Class and Graham in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham and Richtech Robotics 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 Richtech Robotics Class are associated (or correlated) with Graham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham has no effect on the direction of Richtech Robotics i.e., Richtech Robotics and Graham go up and down completely randomly.
Pair Corralation between Richtech Robotics and Graham
Allowing for the 90-day total investment horizon Richtech Robotics Class is expected to generate 4.09 times more return on investment than Graham. However, Richtech Robotics is 4.09 times more volatile than Graham. It trades about 0.03 of its potential returns per unit of risk. Graham is currently generating about 0.13 per unit of risk. If you would invest 111.00 in Richtech Robotics Class on August 24, 2024 and sell it today you would lose (54.00) from holding Richtech Robotics Class or give up 48.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Richtech Robotics Class vs. Graham
Performance |
| Timeline |
| Richtech Robotics Class |
| Graham |
Richtech Robotics and Graham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Richtech Robotics and Graham
The main advantage of trading using opposite Richtech Robotics and Graham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Richtech Robotics position performs unexpectedly, Graham 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 Graham will offset losses from the drop in Graham's long position.| Richtech Robotics vs. Small Cap Core | Richtech Robotics vs. Freedom Holding Corp | Richtech Robotics vs. Gfl Environmental Holdings | Richtech Robotics vs. Growth Fund Of |
| Graham vs. Luxfer Holdings PLC | Graham vs. Enerpac Tool Group | Graham vs. Kadant Inc | Graham vs. Omega Flex |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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