Correlation Between ZEN Graphene and Teuton Resources
Can any of the company-specific risk be diversified away by investing in both ZEN Graphene and Teuton Resources 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 ZEN Graphene and Teuton Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZEN Graphene Solutions and Teuton Resources Corp, you can compare the effects of market volatilities on ZEN Graphene and Teuton Resources 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 ZEN Graphene with a short position of Teuton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZEN Graphene and Teuton Resources.
Diversification Opportunities for ZEN Graphene and Teuton Resources
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ZEN and Teuton is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding ZEN Graphene Solutions and Teuton Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teuton Resources Corp and ZEN Graphene 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 ZEN Graphene Solutions are associated (or correlated) with Teuton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teuton Resources Corp has no effect on the direction of ZEN Graphene i.e., ZEN Graphene and Teuton Resources go up and down completely randomly.
Pair Corralation between ZEN Graphene and Teuton Resources
Given the investment horizon of 90 days ZEN Graphene Solutions is expected to generate 1.34 times more return on investment than Teuton Resources. However, ZEN Graphene is 1.34 times more volatile than Teuton Resources Corp. It trades about 0.03 of its potential returns per unit of risk. Teuton Resources Corp is currently generating about -0.02 per unit of risk. If you would invest 117.00 in ZEN Graphene Solutions on September 1, 2024 and sell it today you would earn a total of 2.00 from holding ZEN Graphene Solutions or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZEN Graphene Solutions vs. Teuton Resources Corp
Performance |
| Timeline |
| ZEN Graphene Solutions |
| Teuton Resources Corp |
ZEN Graphene and Teuton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZEN Graphene and Teuton Resources
The main advantage of trading using opposite ZEN Graphene and Teuton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEN Graphene position performs unexpectedly, Teuton Resources 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 Teuton Resources will offset losses from the drop in Teuton Resources' long position.| ZEN Graphene vs. Milestone Scientific | ZEN Graphene vs. Pro Dex | ZEN Graphene vs. Top Glove | ZEN Graphene vs. Precision Optics, |
| Teuton Resources vs. Defiance Silver Corp | Teuton Resources vs. HUMANA INC | Teuton Resources vs. SCOR PK | Teuton Resources vs. Aquagold International |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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