Correlation Between Syrah Resources and Focus Graphite
Can any of the company-specific risk be diversified away by investing in both Syrah Resources and Focus Graphite 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 Syrah Resources and Focus Graphite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syrah Resources Limited and Focus Graphite, you can compare the effects of market volatilities on Syrah Resources and Focus Graphite 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 Syrah Resources with a short position of Focus Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syrah Resources and Focus Graphite.
Diversification Opportunities for Syrah Resources and Focus Graphite
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Syrah and Focus is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Syrah Resources Limited and Focus Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Graphite and Syrah 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 Syrah Resources Limited are associated (or correlated) with Focus Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Graphite has no effect on the direction of Syrah Resources i.e., Syrah Resources and Focus Graphite go up and down completely randomly.
Pair Corralation between Syrah Resources and Focus Graphite
Assuming the 90 days horizon Syrah Resources Limited is expected to under-perform the Focus Graphite. But the pink sheet apears to be less risky and, when comparing its historical volatility, Syrah Resources Limited is 2.34 times less risky than Focus Graphite. The pink sheet trades about -0.25 of its potential returns per unit of risk. The Focus Graphite is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Focus Graphite on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Focus Graphite or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Syrah Resources Limited vs. Focus Graphite
Performance |
| Timeline |
| Syrah Resources |
| Focus Graphite |
Syrah Resources and Focus Graphite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syrah Resources and Focus Graphite
The main advantage of trading using opposite Syrah Resources and Focus Graphite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syrah Resources position performs unexpectedly, Focus Graphite 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 Focus Graphite will offset losses from the drop in Focus Graphite's long position.| Syrah Resources vs. Ameriwest Lithium | Syrah Resources vs. Osisko Metals Incorporated | Syrah Resources vs. Volt Lithium Corp |
| Focus Graphite vs. Silver Hammer Mining | Focus Graphite vs. Reyna Silver Corp | Focus Graphite vs. Guanajuato Silver | Focus Graphite vs. Silver One Resources |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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