Correlation Between Univar and First Graphene
Can any of the company-specific risk be diversified away by investing in both Univar and First 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 Univar and First Graphene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Univar Inc and First Graphene, you can compare the effects of market volatilities on Univar and First 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 Univar with a short position of First Graphene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univar and First Graphene.
Diversification Opportunities for Univar and First Graphene
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Univar and First is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Univar Inc and First Graphene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Graphene and Univar 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 Univar Inc are associated (or correlated) with First Graphene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Graphene has no effect on the direction of Univar i.e., Univar and First Graphene go up and down completely randomly.
Pair Corralation between Univar and First Graphene
If you would invest 3.80 in First Graphene on September 1, 2024 and sell it today you would lose (1.70) from holding First Graphene or give up 44.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Univar Inc vs. First Graphene
Performance |
| Timeline |
| Univar Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Graphene |
Univar and First Graphene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univar and First Graphene
The main advantage of trading using opposite Univar and First Graphene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univar position performs unexpectedly, First 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 First Graphene will offset losses from the drop in First Graphene's long position.| Univar vs. Valhi Inc | Univar vs. Huntsman | Univar vs. Lsb Industries | Univar vs. Westlake Chemical Partners |
| First Graphene vs. Haydale Graphene Industries | First Graphene vs. Versarien plc | First Graphene vs. NanoXplore | First Graphene vs. G6 Materials Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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